Home
Aswat al Iraq reported that the Iraqi government has reiterated commitments to take all legal actions against the French energy giant Total after signing contracts with Kurdistan region.
Mr Hussein al Shahristani Iraq's deputy prime minister responsible for energy affairs said that Baghdad was considering offering foreign oil firms more lucrative contracts as he admitted a recent auction of exploration blocks had not been as successful as officials had hoped.
Mr Shahristani said that total was requested to withdraw from this field and it has been given a certain period to end this case by selling its share to another company or by ending the contract with Kurdistan.
Kurdish authorities have signed dozens of deals with foreign energy firms on a production sharing basis, contracts regarded as illegal by Baghdad which insists all such deals must go through the federal oil ministry and prefers per barrel service fees. The agreement between Total and Kurdistan came with relations between the autonomous region and Baghdad at low ebb over multiple festering disputes, including over oil contracts and territorial claims.
Mr Shahristani said that Total announced that it signed contracts in Kurdistan and because of that the ministry of oil told them that they had breached Iraqi law. If it ends its contract with Kurdistan, it can proceed with the Halfaya field.
Total is a minority member of a consortium led by China's CNPC and also including Malaysia's Petronas to extract oil from the Halfaya field in Maysan province in a contract awarded in a December 2009 auction. Iraq has proven reserves of 143.1 billion barrels of oil and 3.2trillion cubic meters of gas both of which are among the highest such deposits in the world.
The country currently produces 3.2million barrels per day of oil with resulting exports accounting for the lion's share of government income. Baghdad aims to increase both figures dramatically.
[You must be registered and logged in to see this link.]
Mr Hussein al Shahristani Iraq's deputy prime minister responsible for energy affairs said that Baghdad was considering offering foreign oil firms more lucrative contracts as he admitted a recent auction of exploration blocks had not been as successful as officials had hoped.
Mr Shahristani said that total was requested to withdraw from this field and it has been given a certain period to end this case by selling its share to another company or by ending the contract with Kurdistan.
Kurdish authorities have signed dozens of deals with foreign energy firms on a production sharing basis, contracts regarded as illegal by Baghdad which insists all such deals must go through the federal oil ministry and prefers per barrel service fees. The agreement between Total and Kurdistan came with relations between the autonomous region and Baghdad at low ebb over multiple festering disputes, including over oil contracts and territorial claims.
Mr Shahristani said that Total announced that it signed contracts in Kurdistan and because of that the ministry of oil told them that they had breached Iraqi law. If it ends its contract with Kurdistan, it can proceed with the Halfaya field.
Total is a minority member of a consortium led by China's CNPC and also including Malaysia's Petronas to extract oil from the Halfaya field in Maysan province in a contract awarded in a December 2009 auction. Iraq has proven reserves of 143.1 billion barrels of oil and 3.2trillion cubic meters of gas both of which are among the highest such deposits in the world.
The country currently produces 3.2million barrels per day of oil with resulting exports accounting for the lion's share of government income. Baghdad aims to increase both figures dramatically.
[You must be registered and logged in to see this link.]
