Iraq Oil Report

Plus:
*Korea National Oil Corp. gets two new Iraq Kurd deals
*and made third parties to two existing deals
*Chinese and Turkish firms added to Baghdad deals named

It could be the new age for wildcatters, or just the new age of Iraqi oil development, but the monthly gathering of operators in Iraq’s Kurdistan region is an optimistic party despite above-ground challenges that eclipse those subsoil.

…Dozens of company officials sit around a horseshoe of tables and update each other on their projects’ progress. They exchange tips on the evolving dos and don’ts of operating in northern Iraq and coordinate the joint purchase of services.

At a recent meeting the group was courted by companies pitching oil industry charter flights, Internet services and a range of products directly and indirectly related to the oil sector, Ben Lando reports for United Press International.

Each assembly is hosted by a company on a rotating basis, which provides the post-business gathering happy hour and buffet dinner.

“Working conditions are both better and more complicated than in other regions of the world,” said Peter Seifert, general manager of PETEX, a subsidiary of Austria’s OMV. …

But if any of the post-February 2007 projects begin to flow, the federal government will act, Iraq Oil Minister Shahristani warned.

“That oil will be confiscated; they have no right to work in that part of the country,” he said. “We’ll use a number of measures to stop any violation of Iraq law. Those contracts have no standing with us, we don’t recognize them and they have no right to do that.” …

In Erbil the KRG is being accused of signing contracts for land in the disputed territories, with Hunt being the most prominent.

“They have no right to be there,” said Shahristani. …

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The KRG has signed two production contracts with the Korea National Oil Corp. According to the government statement, KNOC was also granted a minority stake in contracts controlled by TNK-BP affiliate Norbest and Sterling Energy.

Iraq’s Oil Ministry has expanded the list of companies pre-qualified to bid on upcoming oil deals. Turkey’s Turkiye Petrolleri Anonim Ortakligi (Turkish Petroleum Corporation–TPAO) is one, The Jamestown Foundation’s Eurasia Daily Monitor reports. The China National Petroleum Corp., China Petrochemical Corp., China National Offshore Oil Corp. and Sinochem Corp. also qualified, China Daily reports.

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