Thursday, August 27, 2009

Iraq approves Kurdistan oil contracts

According to Kurdish newspapers, Iraq has approved an oil production contract between Kurdistan and foreign oil companies.

Iraq approved an oil contract in Kurdistan that was awarded to Chinese oil giant SINOPEC following its acquisition of the Swiss Adax Petroleum.
Investments in Taq-Taq oilfield will amount to $500 million. The maximum production capacity [of the field] will be 180k bpd but production will start at 40k bpd. The crude will be transported to a storage facility via a 9km long pipeline that was recently built. From there, tanker trucks will take the oil to the Kirkuk-Cehan pipeline. The oilfield is operated by the Turkish Genel Enerji and the Swiss Adax companies as well as the government of Kurdistan. Genel Enerji and Adax will share 12% of export revenues while the remaining 88% will go to the federal government through the Kurdish government in Kurdistan.

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