KRG signs five more PSCs for northern Iraq
Iraq's Kurdistan Regional Government (KRG) has signed five production-sharing contracts (PSC) previously approved by its Regional Oil and Gas Council.
By OGJ editors
HOUSTON, Nov. 13 -- Iraq's Kurdistan Regional Government (KRG) has signed five production-sharing contracts (PSC) previously approved by its Regional Oil and Gas Council.
The PSCs cover areas near Irbil, Al-Sulaymaniyah, and Dahuk in northern Iraq. They are with TNK-BP affiliate Norbest Ltd.; subsidiaries of Sterling Energy LLC and Aspect Energy LLC of Denver; a Korean consortium headed by Korea National Oil Co.; and HKN Energy, an affiliate of Hillwood International Energy, Dallas.
PSCs the KRG signed earlier have come under question from US and Iraqi authorities (OGJ, Oct. 1, 2007, p. 36; Oct. 22, p. 30). Most recently, KRG signed a PSC with OMV Petroleum Exploration (OGJ Online, Nov. 7, 2007).
In conjunction with the five new contracts, KRG Minister for Natural Resources Ashti Hawrami said, "In Kurdistan, we are setting an example: This is the first post-Saddam framework for oil investment in Iraq which follows the democratic, federal, and free market principles mandated by the Iraq constitution."
He said he hopes for a similar framework for all of Iraq.
"Without such a framework, investors cannot have confidence in contracts issued by authorities in other parts of Iraq," he said.