Kurdistan signs first gas sales contract

A new contract with DNO and Genel will help the KRG wean itself off costly diesel for power generation, and set a baseline domestic gas price for oil companies evaluating potential new development.
From left, KRG Minister of Natural Resources Ashti Hawrami, KRG Prime Minister Nechirvan Barzani, DNO International's Executive Chairman Bijan Mossavar-Rahmani and Genel Energy representative and Miran block chief Onder Tekeli, at the Sept. 18, 2013, signing ceremony for the Summail gas sales and purchase agreement. (PATRICK OSGOOD/Iraq Oil Report)

ERBIL - The Kurdistan Regional Government (KRG) has signed a domestic gas sales agreement that will reduce its multi-billion-dollar annual diesel tab and give other oil companies operating in Kurdistan an idea of the pricing level for locally consumed gas.

The signing ceremony at the Ministry of Natural Resources (MNR), between KRG leaders and executives from Norway's DNO International and Anglo-Turkish company Genel Energy, marked the first monetization of natural gas under the region's production sharing contract regime.

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