Iraqi Government Approves Kurdistan Oil Export Accord (Update1)

Iraq’s government approved an accord between the oil ministry and Kurdistan to export crude produced in the semi-autonomous region through a marketing company, paving the way for shipments to resume. Companies including DNO International ASA and Genel Enerji AS halted oil exports from Kurdistan in October, about four months after they started, because there was no mechanism in place to pay them. The finance ministry will send a letter to the Kurdistan government to “guarantee the dues of the companies, after auditing them according to the terms of the agreement,” said Ali Al-Dabbagh, a government spokesman, after a cabinet meeting in Baghdad today. He didn’t give further details. Kurdistan has between 20 billion and 25 billion barrels of “oil-in-place” and proven reserves will likely peak at around 40 billion to 45 billion, Kurdistan Natural Resources Minister Ashti Hawrami said March 24. Iraq’s proven reserves, the world’s third-largest, may range between 115 billion and 215 billion barrels, according to the U.S. Energy Department. DNO climbed as much as 6.3 percent to 8.65 kroner in Oslo trading on news of the approval.

( Bloomberg )

Comments are closed.