Trip report: The future of oil in Kurdistan
I have spent the past few days touring the oil-rich semi-autonomous region of Kurdistan in northern Iraq, visiting oilfields and interviewing its officials and foreign executives. It is boom time for Kurdistan, which optimists hope could soon produce more oil than some members of Opec. As I am leaving, Kurdistan is celebrating the arrival of ExxonMobil, the first of the so-called supermajors to enter the territory to explore for oil.
But the future will not be a simple trajectory.
More
ON THIS STORY
- Shell pulls out of Kurdistan oil talks
- Kurds talk to two more oil groups
- Exxon signs Kurd exploration contracts
- Vallares sounds out FSA on $2.1bn Genel deal
- Hayward strikes $2bn Kurdistan deal
ON THIS TOPIC
Exploration success. The oil and gas map of Kurdistan five years ago was largely blank. Today, dozens of oilfields dot it as companies discover hydrocarbons in commercial quantities in eight of every ten wells they drill. But drilling is not as easy as it appeared to be a few years ago, due to the complex geology of the region, and budgets are overrunning by more than a third in some cases.
Promises, but a tough reality. The Kurdistan Regional Government expects production to reach 1m barrels a day – more than double the output of Ecuador, the smallest member of the Opec oil cartel – by 2015, up from less than 200,000 b/d at present.
Yet future production depends on a political agreement between the KRG and the federal government in Baghdad to approve the long-awaited Iraqi petroleum law, which has been delayed since 2007. While an interim agreement allows for limited exports, which could run at 175,000 b/d next year, companies will be reluctant to invest heavily to lift output towards the 1m b/d target until a political agreement allows the passage of the petroleum law. The KRG and Baghdad say that the legal text will be done by the end of 2012, but cynical oil executives in Erbil note that both sides have repeated the same message for the past five years.
The arrival of Big Oil: Five years ago only a few small companies ventured into the region, but the nametags at a recent oil and gas conference in Erbil read like a Who’s Who of the industry. The pioneers, including the Oslo-listed DNO that is privately owned by Genel Enerji of Turkey, and London-listed Gulf Keystoneare still there, but new entrants are arriving, including large groups such as Hessand Marathon of the US, Repsol YPF of Spain, and OMV of Austria. Exxon has become the first supermajor to sign a contract to explore the region. Oil executives, diplomats and regional officials say other supermajors could soon join the world’s largest oil company.
The impact of the arrival of Exxon is unclear. Optimistic oil executives say it could force Baghdad to accept the KRG’s demands to develop its own industry, but others say that could sour relationships between Kurdistan and the federal government, delaying indefinitely the approval of the petroleum law. The arrival of another supermajor – Chevron of the US, Total of France and Eni of Italy are the names frequently mentioned – could give the KRG the upper hand, however.
The time for M&A. Most of the territory open for exploration has already been snapped up, so new entrants have just two routes: a so-called farm-in agreement, whereby a company buys a stake in a field or exploratory area in exchange for financing, or buying existing companies. The KRG, which by necessity backed small companies at the very beginning, would now prefer to see a consolidation in the sector that leaves fewer and bigger players.
After the arrival of Exxon, the market is valuing the current players at much higher multiples, so expect multibillion dollar deals. Oil executives in Erbil talk in particular about two deals: Gulf Keystone, which could be bought by a supermajor seeking a quick entry; and a potential merger of DNO and Genel Enerji.
Turkey is the new friend. Five years ago, Ankara branded some of the most senior KRG officials as terrorists. Today, Turkish diplomats see Iraqi Kurdistan as a source of energy to power the country’s rapid economic growth. Ankara wants to buy natural gas from Kurdistan for power generation. Moreover, Turkey wants to consolidate Ceyhan as the oil port of the eastern Mediterranean. The port is already the end of the Iraq-Turkey Pipeline and the Baku-Tiblisi-Ceyhan pipeline. Ankara would like to see another oil pipeline – most likely to low-quality Kurdish heavy oil – reaching the port and, potentially, a natural gas pipeline from Kurdistan feeding an LNG plant. Ankara and Erbil even dream that the Iraqi Kurdistan could supply natural gas to the Nabucco pipeline.
The Kurdish boom towns. Erbil, the political capital of Iraqi Kurdistan, is entering an oil boom. The city of 1m people, which still lacks a good hospital, has seen the opening of its first luxury hotel – and another three are under construction. Oil executives fly in and out with airlines offering new routes each month. But while money is pouring in, the region has yet to develop services to benefit from it, importing everything from equipment to food. Costs are rising fast too. Housing prices are rocketing and salaries in the oil industry have doubled in the past five years. And with more than 40 companies elbowing for space in Erbil and the region, retaining competent staff is a problem. Local political commentators are already warning that the region – like others in Latin America, Africa and the Middle East – could see the blessing of oil turning into a curse.
Copyright The Financial Times Limited 2011.
Gulf Keystone Jumps in London on Report Exxon Considering Bid
BeantwoordenVerwijderenBy Will Kennedy - Dec 19, 2011 9:18 AM GMT+0100
Gulf Keystone Petroleum Ltd. (GKP), an oil producer active in Iraq’s Kurdistan region, rose to a record after a report Exxon Mobil Corp. (XOM) is considering a bid for the company.
Gulf Keystone rose as much as 46.5 pence, or 28 percent, to 212 pence a share in London trading, the highest since the company listed in 2004. The shares stood at 207 pence at 8:17 a.m. London time.
Exxon, the world’s largest oil company, is weighing a bid, the Indendent on Sunday reported without saying where it got the information.
++++++++++++++++++++++++++++++++++++++
commentaar: een bod van Exxon op Gulf Keystone of een andere grote speler in Kurdistan zal grote gevolgen hebben voor de oliesector in Kurdistan.
Gulf Keystone Jumps on Report Exxon Considering Making Offer
BeantwoordenVerwijderenDec. 19 (Bloomberg) -- Gulf Keystone Petroleum Ltd. rose to a record in London trading after a report that Exxon Mobil Corp. is considering a 7 billion-pound ($11 billion) takeover offer for the oil producer that's active in Iraq's Kurdistan region.
Gulf Keystone surged as much as 33 percent to 219.75 pence, the highest since the company listed in 2004. The shares were at 197 pence as of 9:15 a.m. local time, giving the Bermuda-based company a market value of 1.7 billion pounds.
Exxon, the world's largest oil company, is weighing a bid that would value Gulf Keystone at about eight pounds a share, the Independent on Sunday reported, without saying where it got the information.
Last month, Exxon became the latest explorer to join the hunt for oil and gas in Iraq's semi-autonomous Kurdish region, home to about 40 percent of Iraq's estimated 115 billion barrels of reserves. Gulf Keystone has announced the discovery of as much as 10 billion barrels of oil in northern Iraq's Shaikan field.
Henry Lerwill, a spokesman for Gulf Keystone in London, declined to comment. Emma Heywood, a U.K.-based spokeswoman for Exxon, referred questions to company headquarters in Irving, Texas.
Kurdistan has attracted interest from small- and mid-sized foreign explorers since the fall of Saddam Hussein in 2003 opened the region for the first time in decades.
The Iraqi central government in Baghdad said this month it will uphold agreements with Exxon “for now” after the company signed energy contracts the government considers illegal with the Kurdish region. Kurdistan and Iraq have yet to determine how oil revenues will be split.
Exxon woos GKP to gain Kurdish base
BeantwoordenVerwijderenMARK LEFTLY SUNDAY 18 DECEMBER 2011
US oil supermajor Exxon Mobil is understood to have sounded out London-listed Gulf Keystone Petroleum (GKP) over a possible deal that could value the Kurdistan-focused group at around £7bn.
GKP has a market capitalisation of around £1.5bn and is listed on the junior Aim market, but its chief executive, Todd Kozel, believes the group could eventually go for double-figure billions. GKP is sitting on what is considered to be one of the world's great recent oil finds – Shaikan, about 50 miles north-west of Kurdistan's capital, Erbil – but the regional government is known to want a supermajor on board to properly fund and develop the field.
It is thought that the board would not accept the estimated £8-a-share that Exxon is considering and that a number of other companies, perhaps including China's Sinopec and Californian giant Chevron, are monitoring the situation. There is even some speculation that an informal four-way auction for GKP might be under way, while it is also believed that the company has spoken to at least two smaller businesses about potentially developing its assets in a joint venture.
Last month, it emerged that Exxon was the first of the oil industry's giants to enter Kurdistan, taking six licences. However, this has angered the government in Baghdad because there are old territorial disputes between Iraq and Kurdistan.
Baghdad had threatened to terminate Exxon's existing deal in southern Iraq and it had been reported that the US giant might reconsider its licences in Kurdistan. However, the lucrative potential of the Kurdistan fields means that analysts expect Exxon will pursue opportunities in the semi-autonomous region and may already have taken additional positions to those licences previously revealed.
There are suggestions that Exxon's interest in GKP was discussed at a board meeting 10 days ago and that initial soundings may have been taken at least six weeks ago. Last month, much of the oil world descended on Erbil for a conference that highlighted the extraordinary oil opportunities in Kurdistan, with Mr Kozel one of the key speakers.
It is believed that Mr Kozel would be happy to sell up soon and has even started mulling over his next venture. The American businessman is one of the most colourful figures in the City and has a base of devoted retail investors who are waiting for a takeover of GKP to make them rich.
GKP declined to comment. Exxon did not return calls.
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http://www.independent.co.uk/news/business/news/exxon-woos-gkp-to-gain-kurdish-base-6278531.html?origin=internalSearch
Gulf Keystone Rises 12% on Speculation That Company Will Be Sold
BeantwoordenVerwijderenBy Brian Swint - Jan 10, 2012 11:56 AM
Gulf Keystone Petroleum Ltd. (GKP), an oil and gas explorer in the Kurdistan region of northern Iraq, rose to a record on speculation that the company will be sold.
Shares climbed as much as 12 percent in London and traded up 11 percent at 245.5 pence as of 10:54 a.m., the highest since listing in 2004. The stock rose 8.6 percent yesterday.
The Bermuda-based company today confirmed that the Kurdistan regional government has the right to buy into the Shaikan and Akri-Bijeel blocks. The Daily Mail newspaper reported that speculation the company will be taken over had been revived after Gulf Keystone last month denied it was in talks with Exxon Mobil Corp. (XOM)
“Gulf Keystone will sell up, that’s the consensus,” said Alex Ogbechie, an oil analyst at Fox-Davies Capital Ltd. in London. “It’s just a matter of time. The agreement on provisions of the contracts makes investors a bit more comfortable.”
Wauw!
BeantwoordenVerwijderenGulf Keystone stijgt als een raket en staat nu al op 295 p.
Dit wordt een mooie dag voor Kurdistan-olie-aandelen...!!
Gulf Keystone Petroleum gets green light for latest phase of Algeria exit
BeantwoordenVerwijderenFri 7:34 am by Ian Lyall
The receipt of formal government approvals ends a process that began back in 2010.
Gulf Keystone Petroleum (LON:GKP) has received permission to transfer its interest in the Hassi Ba Hamou permit in Algeria to BG Group and Sonatrach at no cost.
The receipt of formal government approvals ends a process that began back in 2010.
It is part of a strategic exit from the country which will allow the company to concentrate on its world class oil assets in Kurdistan, the semi-autonomous region of Iraq.
Todd Kozel, company’s chief executive, said: "We are pleased that with the HBH transfer we have made good progress towards achieving our goal of a gradual strategic exit from Algeria.
“We are firmly focused on our operations spanning four exploration blocks in the Kurdistan Region of Iraq, including the Shaikan world-class discovery, where the 2012 and 2013 high impact drilling campaign is currently underway following excellent results achieved in 2011.”
The flagship Shaikan block is estimated to contain 8 billion barrels of crude calculated on a P90 basis – meaning the oil has a 90 per cent certainty of being produced. The P10 value is 13.4 billion barrels, giving a mean figure of 10.5 billion barrels.
The last update was possibly one of the most encouraging so far as the company’s chief operating officer, John Gerstenlauer, said the Shaikan-4 may be the best well it has logged to date.
It achieved a flow rate of 4,970 barrels and 7 million standard cubic feet of gas a day from a thin zone at the bottom of the lower-lying Kurre Chine B formation.
The oil was a 39 degree API light crude, while the gas flowed at a wellhead pressure 1,101 PSI.
In the Kurre Chine C, Shaikan-4 achieved a flow rate of 563 barrels a day and flowed 3.65 million cubic feet of gas. These were two of seven planned well tests.
Gulf Keystone's Gerstenlauer says Shaikan-4 could be best well to date
BeantwoordenVerwijderen23rd Jan 2012, 7:37 am by Ian Lyall
The oil was a 39 degree API light crude, while the gas flowed at a wellhead pressure 1,101 PSI.
Gulf Keystone Petroleum’s (LON:GKP) chief operating officer John Gerstenlauer reckons the Shaikan-4 may be the best well it has logged to date.
In the latest operations update the group said it achieved a flow rate of 4,970 barrels and 7 million standard cubic feet of gas a day from a thin zone at the bottom of the lower-lying Kurre Chine B formation.
The oil was a 39 degree API light crude, while the gas flowed at a wellhead pressure 1,101 PSI.
In the Kurre Chine C, Shaikan-4 achieved a flow rate of 563 barrels a day and flowed 3.65 million cubic feet of gas. These were two of seven planned well tests.
Gerstenlauer said: “Initial results of the Shaikan-4 well testing programme are very encouraging with logging results indicating that Shaikan-4 may be the best well which Gulf Keystone has logged to date in the Kurdistan Region of Iraq.
“We look forward to adding to our already outstanding drilling success in the region by completing further Shaikan-4 well tests, which will be followed by more results from the Shaikan-5 and Shaikan-6 appraisal wells before the appraisal programme of the Shaikan world-class discovery is completed.”
The fifth well on the Shaikan block is just under halfway towards hitting a total depth of 3,500 metres, while Shaikan-6 is at around 844 metres.
Drilling began on Aqra-1, the first appraisal on the Akri-Bijeel block, on January 17, while Ber Bahr-1, the first well on the block of the same name, is very close to reaching its target depth of 3,000 metres. Currently it sits at 2,778 metres.
The current resource estimate for Ber Bahr is 1.5 billion barrels of oil in place, though analysts believe Ber Bahr could actually be larger than Shaikan.
“Initial results from the Ber Bahr-1 exploration well and progress in the 2012 wide-ranging exploration, appraisal and early development programme of the Akri-Bijeel block are highly anticipated," said Gerstenlauer.
Een mooie, grote kaart van de olieconcessies in Kurdistan:
BeantwoordenVerwijderenhttp://www.shamaranpetroleum.com/i/pdf/Kurdistan_Oil_Gas_Activity.pdf
DNO says sees higher production as it drills in Kurdistan
BeantwoordenVerwijderenUPDATE 1-DNO says Q4 earnings above expectations
Wed, Feb 8 2012
OSLO | Wed Feb 15, 2012 1:54am EST
Feb 15 (Reuters) - Norwegian oil company DNO sees production output rising this year as it drills new wells and boosts capacity at its prize Tawke field in Iraqi Kurdistan, the company said as deal-making rumours swirl around the Kurdish oil sector.
"DNO has an extensive drilling plan for 2012, with a total of 18 wells expected to be drilled during the year," the company said. "Two wells are currently in progress in Kurdistan with results expected during the first quarter."
DNO made the remarks as it posted fourth-quarter 2011 results largely in line with preliminary figures given last week. Net profit came in at 203 million Norwegian crowns ($35.4 million) as against a 31-million-crown net loss a year ago.
Operating profit, which it had not pre-reported, was 210.8 million crowns, more than double last year's figure, though analysts in a Reuters poll had on average forecast 273 million.
Several analysts jacked up DNO share price targets in the past week, calling DNO was a buyout target as major companies like Exxon Mobil and Total challenge Baghdad's ban on doing business in semi-autonomous Kurdistan.
Talisman finds light oil at Iraq well
BeantwoordenVerwijderenMarch 26 | Mon Mar 26, 2012 8:57am EDT
(Reuters) - Canada's Talisman Energy Inc said it discovered light oil at one of its wells in Kurdistan in northern Iraq.
"We have tested only a portion of an upper zone, but we have clear indications that there is oil here," said Richard Herbert, executive vice-president of international exploration.
Herbert said the company will now drill deep and conduct more extensive testing at the Kurdamir-2 well over the summer.
Talisman, which had been cutting back on natural gas spending to cope with weak prices, is the operator of the Kurdamir block, with a 40 percent working interest.
Its joint venture partner for Kurdamir is Canadian-based oil explorer WesternZagros Resources, which also holds 40 percent interest.
The tests showed there was no presence of water, WesternZagros said in a separate statement.
Talisman shares closed at C$13.10 on Friday on the Toronto Stock Exchange, while WesternZagros shares closed at 67 Canadian cents on the Toronto Venture Exchange.
zo 01 apr 2012, 15:28
BeantwoordenVerwijderenIrak exporteert recordhoeveelheid olie
BAGDAD - Irak heeft sinds 1980 niet meer zo veel olie geëxporteerd als afgelopen maand. Er gingen in maart in totaal 71,8 miljoen vaten olie het land uit, wat neerkomt op 2,3 miljoen vaten per dag. De uitvoer zal naar verwachting de komende tijd nog blijven stijgen, zo maakte zondag een woordvoerder van het ministerie van Olie bekend.
De olie-export leverde in maart bijna 8,5 miljard dollar op. Dat bedrag vloeide voor een groot deel in de staatskas en was de belangrijkste inkomstenbron voor de overheid. Irak heeft eerder gezegd de olieproductie zo te willen opvoeren dat in 2017 er 12 miljoen vaten per dag worden uitgevoerd. Maar volgens het Internationaal Monetair Fonds is die doelstelling te ambitieus.
WesternZagros's Kurdamir-2 Well Discovers a Giant Oil Field in the Oligocene Reservoir
BeantwoordenVerwijderen04/23/2012 | 08:17am
CALGARY, ALBERTA--(Marketwire - April 23, 2012) -
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") is pleased to announce that the mean estimate of gross unrisked contingent resources ("Mean Contingent Resources") has increased to 147 million barrels of recoverable oil (corresponding to 464 million barrels of mean estimated gross discovered oil initially in place) and the mean estimate of gross unrisked prospective resources ("Mean Prospective Resources") has increased to 1.2 billion barrels of recoverable oil (corresponding to 3.6 billion barrels of mean estimated gross undiscovered oil initially in place) for the Oligocene reservoir in the Kurdamir Block. These results follow the major oil discovery at the Kurdamir-2 exploration well in the Kurdistan Region of Iraq. The significant increase in both Mean Contingent and Prospective Resources is due to the fact that Kurdamir-2 encountered a 118 meter light oil column with no indications of a water leg at the Kurdamir-2 location, proving that the oil leg in the Oligocene reservoir on the flank of the Kurdamir structure is involved in a much larger trap than was previously interpreted. The updated resource estimates are confirmed in an independent audit carried out by Sproule International Limited ("Sproule").
"We are delighted with these results as we have found what this company was created to find, and the reason we entered Kurdistan. The Kurdamir structure is proving to be one of the top oil discoveries of the decade and this is a company maker for us," said Simon Hatfield, WesternZagros's Chief Executive Officer. "The oil reservoir of the Kurdamir structure extends further than the area previously assessed and we have not yet found its limits. In addition there is still more news to come on this well as we drill deeper into the Eocene and Cretaceous reservoirs and conduct further testing of the Oligocene oil leg in the coming months."
Contingent Resources
The Company reports an increase of approximately 400 percent of the Mean Contingent Resources in the Oligocene reservoir in the Kurdamir Block to 147 million barrels of oil ("MMbbl"). When gas and condensate are included the Mean Contingent Resources equal 384 million barrels of oil equivalent ("MMBOE"), as shown in Table 1(a) below. For completeness, the corresponding petroleum initially-in-place estimates are also included in Table 1(b) below.
Prospective Resources
The Company also reports an increase of approximately 300 percent in the Mean Prospective Resources for the Oligocene reservoir in the Kurdamir Block to 1.2 billion barrels of oil ("Bbbl"), or 1.4 billion barrels of oil equivalent ("billion BOE") when gas and condensate are included, as shown in Table 1(c) below. For completeness, the corresponding petroleum initially-in-place estimates are also included in Table 1(d) below.
The Kurdamir-2 exploration well is currently drilling through the Eocene reservoir at a depth of approximately 3,114 metres and is encountering numerous oil shows. Operations, to date, remain on time and budget. WesternZagros anticipates that the deeper Eocene and Cretaceous reservoirs will be drilled and evaluated by the end of the second quarter of 2012. The Company is working with the operator, Talisman (K44) B.V. ("Talisman"), to examine additional testing options focused on the full 118 metres of gross oil pay in the Oligocene after the well has met the PSC commitments. The co-venturers are also planning a 3D seismic program and a further appraisal well to help determine the ultimate size of the Oligocene reservoir
Iraq Kurdistan sees more oil deals with majors soon
BeantwoordenVerwijderenTue Jun 19, 2012 9:01am EDT
* Says output target of 1 million bpd is achievable
* Sees more firms coming to region in next months
* Working to ensure exports resume
By Peg Mackey
LONDON, June 19 (Reuters) - Iraq's autonomous Kurdistan expects more oil majors to follow Exxon Mobil Corp in the next few months in striking deals in the region, where oil shipments will resume, its natural resources minister said, despite a dispute with Baghdad.
The U.S. company became the first oil major to move into the northern Kurdish region in mid-October when it signed a deal with the Kurdistan Regional Government (KRG).
"The market is very buoyant in Kurdistan. We have a lot of majors circling around looking at new PSCs (production-sharing contracts) and certainly mergers and acquisitions," Natural Resources Minister Ashti Hawrami told an energy conference in London on Tuesday.
"So in the next few months, we expect to see another two or three major companies coming and working in Kurdistan."
French major Total is looking to secure a package of exploration blocks in Kurdistan, and Norway's Statoil is also looking closely at KRG exploration blocks, industry sources have said.
Exxon's deal, involving six blocks, angered the Iraqi central government in Baghdad, which holds that any oil contracts signed with Kurdistan are illegal. Arbil and Baghdad are locked in a long-running feud over oil and land.
Exxon is keeping a low profile in Kurdistan, but industry sources said the company has issued a tender for drilling rigs.
Exxon declined to comment.
The KRG halted oil exports in April due to a payment dispute with Baghdad. Before then, contractors in Kurdistan were producing and exporting about 200,000 barrels per day (bpd), said Hawrami, who was adamant shipments would resume.
"The oil will flow ... regardless of an agreement, and I infinitely prefer an agreement," he said.
"When you have 1 million barrels a day stranded, it will find its way to the market despite the political haggling."
About 60,000 bpd is still being supplied to the domestic market. Industry sources say Arbil is prepared to start sending crude by truck to Turkey soon, possibly as part of a crude-for-products swap.
Kurdistan holds an estimated 45 billion barrels of oil reserves, and 25 to 30 exploration wells are now being drilled by contractors, the minister said. By 2014 to 2015, output should grow to 1 million bpd, he said.
"This is guaranteed and doable. We can achieve it if we eliminate the political obstacles in front of it," Hawrami said.
"We expect more discoveries this year to bring us to our new target of 2 million barrels per day by 2019."
WesternZagros Provides Kurdamir-2 Operational Update
BeantwoordenVerwijderenPress Release: WesternZagros Resources Ltd. – Fri, Jun 29, 2012 7:30 AM EDT
Symbol Price Change
WZR.V 1.21 0.08
CALGARY, ALBERTA--(Marketwire -06/29/12)- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WesternZagros Resources Ltd. (WZR.V) ("WesternZagros" or "the Company") is pleased to provide an operational update on drilling operations at the Kurdamir-2 well and on remediation efforts at the Sarqala-1 well.
Headlines:
-- Kurdamir-2 well has reached total depth and penetrated 510 metres of
naturally-fractured marlstones and limestones in the Cretaceous
Shiranish reservoir. Oil shows were recorded throughout the interval.
-- Remedial action to repair the operational issue at Sarqala-1 will be
completed in 2 weeks.
-- WesternZagros has reached 2 million man hours without a lost time
incident.
Kurdamir-2 Exploration Well
The operator, Talisman (Block K44) B.V. ("Talisman") and WesternZagros have informed the Kurdistan Regional Government that the well has reached final total depth of approximately 4,000 metres within the Cretaceous-age Shiranish reservoir. The Shiranish reservoir, as penetrated, was comprised of a gross interval of 510 metres of naturally-fractured marlstones and limestones. Oil shows with associated elevated mud gas readings were recorded over the entire Shiranish section penetrated. Wireline logging operations have commenced and upon conclusion, the wellbore will be cased with a 7" diameter production liner prior to the commencement of testing. The Company anticipates reporting test results of the Shiranish testing program throughout July and August. Cased hole testing programs are also being discussed with the operator for the previously cased Eocene and Oligocene reservoirs.
WesternZagros is also in discussions with the operator on extended well testing options following the completion of the Kurdamir-2 initial testing program. In addition, the parties are discussing the timing and location of the next appraisal well, Kurdamir-3.
Sarqala-1 Well
Remediation work is continuing at the Sarqala-1 well. The cause of the malfunction of the subsurface valve has been diagnosed and the necessary equipment and services have been procured to complete the remediation. WesternZagros anticipates that it could take up to two weeks in order to return the well to its former status.
Health, Safety and Environmental ("HSE") Milestone
On June 3, 2012, WesternZagros's operations achieved 2 million man hours without a lost time incident. The dedication to safety demonstrated by all of the Company's employees and contractors has produced a world-class work safety culture.
De koers van WesternZagros bereikt vandaag een hoogtepunt voor 52 weken, in deze slechte tijden is dat een hele fraaie prestatie.
VerwijderenHet zou me niet verbazen als er een grote opkoper bezig is.
WZR is een fundamentele koop, maar vooral een overnamekandidaat.
Genel Energy Buys Kurdistan Assets From Heritage Oil
BeantwoordenVerwijderenBy Stuart Watson | More Articles
August 21, 2012 | Comments (0)
LONDON -- Genel Energy (LSE: GENL.L ) is beefing up its presence in Kurdistan, one of the oil sector's hot regions at the moment, by buying a 26% stake in the Miran Block from Heritage Oil (LSE: HOIL.L ) , taking its working interest up to 51%.
The price is $156 million, but Genel will also be providing Heritage with a $294 million short-term loan at an interest rate of 8% per annum as part of this deal, and Genel will become the joint operator of the Miran Block.
According to recent report, the Miran Block contains mean gas in place of 10.5 tcf with mean contingent and risked prospective resources of 3.75 tcf of gas and 161 mmboe of liquids. Five wells have been drilled on the block since the current drilling campaign began in December 2008, including one that is currently being tested and another that is yet to reach its target depth.
Genel is still perhaps best known for the fact that it is led by Tony Hayward, the former CEO of BP. Commenting on the deal, Hayward said:
This acquisition represents an excellent opportunity to extend our interest in, and assume joint operatorship of, a commercial gas discovery and high quality asset in the Kurdistan Region of Iraq. Following our recent acquisition of a 44% interest in Bina Bawi, it will further enhance our position as the leading oil and gas company in Kurdistan. We believe that as an Anglo-Turkish company we are uniquely placed to execute the full field development of the Miran Field including gas exports to Turkey and we aim to build a material gas business alongside our existing oil business in the medium term.
Genel investors appeared to be fairly indifferent to the deal with the shares up around 1% to 707.5 pence this morning.
However, Heritage shares leaped 12% to 188 pence as the company said that should this deal proceed, it would no longer need the rights issue announced earlier this month to buy a stake in OML 30 field in Nigeria from Royal Dutch Shell, Total and Eni. Heritage CEO Tony Buckingham said:
We believe this sale and loan financing crystallises significant value for shareholders, demonstrating our ability to invest in and monetise assets at an appropriate stage. The proceeds provide significant financial flexibility allowing us to fund the proposed acquisition of OML 30 without any rights issue or other additional capital requirement from, or potential dilution to, our existing shareholders.
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Anoniem29 augustus 2012 08:29
BeantwoordenVerwijderenWZR stijgt ook lekker door. Wat zijn je verwachtingen daarvan voor de komende periode?
Anoniem,
VerwijderenToen WZR nog niks gevonden had stond de koers veel hoger.
Indien de productie flink op gang komt en/of er een bod op het bedrijf komt, dan kan de koers algauw verdubbelen.
Het bedrijf zit (bijna letterlijk) op vele miljarden barrels; je moet echter wel enig positief geloof hebben in de politieke gang van zaken in Kurdistan.
Talisman Energy Flows High Quality Oil From Kurdamir-2 Well
BeantwoordenVerwijderenPress Release: Talisman Energy Inc. – 17 minutes ago
Symbol Price Change
TLM 11.02
CALGARY, ALBERTA--(Marketwire - Nov 19, 2012) - Talisman Energy Inc. (TLM.TO) (TLM) has confirmed a significant accumulation of light oil in the Kurdamir-2 well in the Kurdistan Region of northern Iraq.
"We are very excited to have found high quality oil with significant flow rates in the lower part of the Oligocene formation," said Richard Herbert, Executive Vice-President, Exploration. "We are preparing to test two additional zones in the oil leg over the coming weeks. Plans are underway to drill an appraisal well, Kurdamir-3, adjacent to this discovery, in early 2013."
The cased-hole test was conducted in the deeper part of the Oligocene formation and follows on the initial open-hole test conducted in March 2012. The test targeted 20 metres of fractured reservoir below the main porous zone. This zone tested at stabilized rates of up to 3,450 bbls/d of 38 degree API oil and 8.8 mmcf/d of natural gas over a two-day period. The final rate was achieved on a 72/64" choke with a wellhead flowing pressure of 810 psi. The results of this test confirm the presence of an oil column of at least 146 metres in the Oligocene reservoir, with no evidence yet of the oil-water contact level. The deeper extent of the oil column will be appraised by the drilling of the Kurdamir-3 well.
Talisman is operator of the Kurdamir Block, with a 40% working interest. Joint venture participants include WesternZagros Limited, with a 40% working interest, and the Kurdistan Regional Government, with a 20% carried interest.
11/19/2012 7:10:02 AM
BeantwoordenVerwijderenWesternZagros Exceeds Expectations from First Cased Hole Test in Kurdamir-2 Oligocene
CALGARY, ALBERTA--(Marketwire - Nov. 19, 2012) -
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has successfully completed the first of three planned cased-hole tests in the Oligocene Formation of the Kurdamir-2 well in the Kurdistan Region of Iraq. Flow rates of up to 3,450 barrels per day ("bbl/d") of light oil were achieved from the 20 metre perforated interval, the deepest of the planned Oligocene tests. The Company now interprets the Oligocene oil leg encountered in this well to be 146 metres minimum thickness (previously interpreted to be 118 metres). WesternZagros expects that its contingent resources estimate will increase significantly as a result of this test.
Simon Hatfield, WesternZagros's Chief Executive Officer commented,
"This first cased-hole test result far exceeded our expectations from what we consider to be the poorest quality portion of the reservoir. The primary objective of testing this deepest interval was to establish lowest known oil. We now look forward to determining the flow rate from the two additional tests in the main zone of the increasingly promising Oligocene reservoir."
The cased-hole test was conducted over a perforated interval of 20 metres of fractured reservoir below the main porous zone of the Oligocene. The maximum flow rate of 3,450 bbl/d of light oil and 8.8 mmcf/d of natural gas was reached after flowing and stabilizing the well for two days at progressively larger choke sizes. The final rate was achieved on a 72/64" choke with a wellhead flowing pressure of 810 psi. The oil was high quality 38 degree API and no formation water was detected. The Company's expectation of an increase in its contingent resources is based on the now proven lowest known oil in the Kurdamir-2 well at 2,590 metres, 28 metres deeper than reported following the initial open-hole test conducted in March 2012. The test results also validate that the prospective resources contained in the Oligocene extend still further down the structure; and this will be further evaluated in the upcoming Kurdamir-3 well to be drilled once current operations on Kurdamir-2 are completed.
The operator, Talisman (Block K44) B.V. ("Talisman") will continue the testing program of two additional Oligocene intervals at Kurdamir-2. Upon completion of the testing program, test and wire log data will be analyzed and the Company will release an updated resource estimate for the Oligocene once confirmed by its independent auditors.
WesternZagros and Talisman each have a 40 percent working interest in the Kurdamir Block with the Kurdistan Regional Government ("KRG") holding the remaining 20 percent.
Ik denk dat we nu ruimschoots uitkomen boven de 2 miljard barrels voor Kurdamir, hiervan komt 40% toe aan WesternZagros.
VerwijderenAls we uitgaan van 10 USD nettowinst per barrel, dan wordt WZR hier zo'n 8 miljard USD beter van, kortom WZR is een geheide overnamekandidaat op een veelvoud van de huidige koers.
Richard Chandler Corporation Becomes a Significant Shareholder in WesternZagros Resources
BeantwoordenVerwijderenSINGAPORE, Dec. 2, 2012 /CNW/ - The Richard Chandler Corporation ("RCC") today announced a CAD $73 million investment in WesternZagros Resources ("WesternZagros"), acquiring 15.21% of the company's issued and outstanding common shares.
WesternZagros is a Leader in the Vibrant Energy Sector in the Kurdistan Region
WesternZagros is a Canadian-registered company engaged in the exploration, development, and production of crude oil and natural gas. Incorporated in 2003 to focus on opportunities in Kurdistan, the company has been a leading player in the region. Led by an experienced operating and management team, RCC believes WesternZagros is strongly positioned in one of the largest underexplored onshore oil regions in the world.
In 2005, WesternZagros became one of the first companies to sign a Production Sharing Contract ("PSC") with the Kurdistan Regional Government ("KRG"). This agreement provided them access to one of the largest exploration areas (500,000 acres) on some of the most attractive terms available in the region – roughly as large as the giant and super-giant fields of the Kirkuk area.
According to the WesternZagros' most recent reserves report (from 31 May 2012), the combined Mean Prospective Resources of the company is 3.3 billion barrels ("Billion bbls") of oil, or 4.9 billion barrels of oil equivalent ("BOE") when gas and condensate are included. WesternZagros has discovered oil at all four of the wells that have been drilled and tested to date. They have also become a premier regional producer of high-quality oil, with more than 5,000 barrels per day.
Richard Chandler Corporation
RCC views its investment in WesternZagros as one that will help turn potential into long-term economic growth which will support the development of the Kurdistan region.
Richard Chandler, Chairman of RCC, remarked:
"The Richard Chandler Corporation believes in building and developing world-scale companies, which make a significant contribution to their nation's people and economy. WesternZagros is a pioneer, one of the leaders in the development of an oil and gas industry in the Kurdistan Region of Iraq. The company is poised for significant growth through disciplined delivery of its strategy. Through their work, WesternZagros is bettering the lives of people in the region."
Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=31852693&l=0&r=0&s=WZR&t=LIST#hE5B62XolRgLhCCU.99
WesternZagros Resources Ltd.
BeantwoordenVerwijderenTICKER: WZR:TSX.V
Visit Company Website
WesternZagros Resources Ltd. is an international natural resources company engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas. WesternZagros holds two Production Sharing Contracts with the Kurdistan Regional Government in … read more
The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Expert Analysis
Morning Coffee (12/3/12) "WesternZagros Resources Ltd.'s partner Talisman Energy Inc. recently announced that it has successfully completed the first of three planned cased-hole tests in the Oligocene formation of the Kurdamir-2 well in the Kurdistan region of Iraq. . .the company now expects an increase in its contingent resources based on the now-proven lowest-known oil in the Kurdamir-2 well at 2,590m. . .the test results also validate that the prospective resources contained in the Oligocene extend still further down the structure."
David Dudlyke, Dundee Securities (12/3/12) "Following Abu Dhabi National Energy's (TAQA) sale of its entire holding of 74M of WesternZagros Resources Ltd.'s shares last week, Richard Chandler Corp., a Singapore-based institutional investor, has acquired ~62.7M company shares at ~C$1.16/share, thus holding 15.21% of WesternZagros and becoming its newest and largest shareholder. . .we view the entry of Richard Chandler Corp. as the company's largest shareholder as a positive signal. . .we believe that our valuation is well supported by recent and prospective well results, with further upside potential driven by an active 2013 drilling program."
Shahin Amini, TD Securities (11/22/12) "For Q3/12, WesternZagros Resources Ltd.'s financial results were in line with expectations and cash at quarter end was $152M. On Nov. 8, 2012, the company restarted the extended well test at the Sarqala-1 well after receiving approval from the Kurdistan regional government; producing at approximately 5,000 boepd (gross), the production is being delivered into the export market."
David Dudlyke, Dundee Securities (11/21/12) "WesternZagros Resources Ltd.'s Q3/12 results provided few material variances from our previous assumptions. . .Kurdamir-3 is expected to spud in February 2013 to further appraise the Oligocene reservoir. . .extended well testing of Sarqala-1 has resumed. . .the company's balance sheet remains robust. . .we believe no further capital will be required until H2/13 in order to maintain sufficient liquidity."
David Przybyla, FirstEnergy Capital (11/20/12) "Following WesternZagros Resources Ltd.'s first successful cased-hole testing of the Oligocene at Kurdamir-2, we have increased our target price to CA$2.50 (from CA$2.40), in line with our risked NAV, and we maintain our Outperform recommendation. This test confirms the productivity of the Oligocene and further derisks the oil potential of the flank of the Kurdamir structure. . .the company remains our preferred name to play the ongoing consolidation in Kurdistan and one of the most promising exploration and production stories in our coverage universe."
Corporate Presentation (11/27/12) Fact Sheet (11/29/12)
WesternZagros Completes Successful Oil Test at Kurdamir-2 and Prepares for Further Appraisal
BeantwoordenVerwijderenPress Release: WesternZagros Resources Ltd. – 10 hours ago
Symbol Price Change
WZR.V 1.06 -0.14
CALGARY, ALBERTA--(Marketwire - Dec. 11, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") and the Operator, Talisman (Block K44) B.V. ("Talisman"), is preparing to complete the Kurdamir-2 well after successfully finishing an additional cased-hole test in the Oligocene Formation (DST#7). The test was conducted over a 24 metres thick interval between depths of 2,528 metres and 2,552 metres. It achieved a stabilized flow rate of 2,184 barrels per day ("bbl/d") of light, 42 degree API oil, together with 10.4 million cubic feet per day ("mmcf/d") of natural gas. The gas to oil ratio likely indicates a partial contribution from the gas cap due to free gas drawdown through natural fractures in the reservoir. The 3.5 inch tubing size used to conduct this test, together with the unanticipated gas contribution from the gas cap, restricted the oil flow from the reservoir. As a result, the Operator and WesternZagros have agreed that further tests of shallower zones in the Oligocene reservoir are unnecessary and are now working together on plans to realize the maximum oil production potential from the Oligocene reservoir in Kurdamir-2, potentially through an extended well test subject to the approval of the Kurdistan Regional Government.
Simon Hatfield, WesternZagros's Chief Executive Officer commented,
"This second cased hole test in the Oligocene further reinforces our view that Kurdamir is a giant discovery. The results of the entire Oligocene testing program have exceeded our expectations for both thickness of oil column and reservoir quality. It is apparent that the intervals tested have excellent permeability and, with optimally designed well completions to isolate the gas cap, are expected to yield oil production rates far in excess of the currently constrained rates. The results continue to support our belief that the Oligocene has the potential to hold over a billion barrels of recoverable oil. We are excited about our next appraisal well in the Kurdamir structure at Kurdamir-3. Kurdamir-3 will spud as soon as possible in the new year."
This most recent cased-hole test was conducted over a perforated interval of 24 metres thick in fractured carbonates in the main porous zone of the Oligocene reservoir. The flow rates of 2,184 bbl/d of light oil and 10.4 mmcf/d of natural gas were recorded after flowing and stabilizing the well for three days at progressively larger choke sizes. The stabilized rate was achieved on a 44/64" choke with a wellhead flowing pressure of 1,705 psi. The oil was high-quality 42 degree API and no formation water was detected. The oil rate was restricted due to gas choking within the 3.5 inch completion tubing. The gas to oil ratio is indicative of gas being drawn down from the gas-oil contact, which is 83 metres above the test interval. Larger diameter tubing would allow higher oil test rates. For example, the Company expects that the interval previously tested in DST#6 could flow oil at rates up to 7,000 bbl/d if larger tubing is used. The Company is in the process of completing a similar analysis for DST#7 and to determine the optimum tubing size for the completion.
2)
BeantwoordenVerwijderenThe Kurdamir-2 test and wireline log data have been analyzed in order to update contingent and prospective resource estimates for the Oligocene reservoir. The Company expects that the contingent resource estimates will materially increase. Updated resource estimates will be publicly released once confirmed by the Company's independent auditors. The current independently audited unrisked mean estimates for the contingent resources in the Oligocene reservoir of the Kurdamir structure are 990 billion cubic feet of gas, 39 million barrels ("MMbbl") of condensate and 147 MMbbl oil as of April 20, 2012. The current independently audited unrisked mean estimate for the prospective resources in the Oligocene reservoir is 1,150 MMbbl prospective oil resources as of May 31, 2012.
Following the completion of Kurdamir-2, the Operator will move the rig to the Kurdamir-3 well location for an anticipated spud date in February 2013.
WesternZagros and Talisman each have a 40 percent working interest in the Kurdamir Block with the Kurdistan Regional Government ("KRG") holding the remaining 20 percent.
Na bovenstaand zeer positief bericht ging de koers dus OMLAAG....!!!
VerwijderenWat willen deze verkopende aandeelhouders eigenlijk....??
Het blijkbaar nooit genoeg; zelfs meer dan 1 miljard barrels in slechts een van de vele olielagen vindt men niet genoeg.
WZR mag na terugbetaling van alle investeringen minimaal ca 15% netto overhouden.
Genel Energy Starts Kurdish Oil Export, Bypasses State Links
BeantwoordenVerwijderenBy Nayla Razzouk & Khalid Al-Ansary - Jan 8, 2013 3:04 PM GMT+0100
Genel Energy Plc (GENL) has started shipping crude from Iraq’s Kurdish region into Turkey, two weeks after exports from the semi-autonomous area were halted.
The Kurdistan Regional Government has authorized exports from Genel’s Taq Taq oil field, Andrew Benbow, a company spokesman, said today in an e-mail. Ali Hussein Balou, an adviser to the KRG natural resources minister, declined to comment on the matter.
The KRG, feuding with the Iraqi central government over disputed land and energy revenue, stopped transporting crude via the central government-run pipeline network on Dec. 22. The federal government owes 350 billion dinars ($300 million) to companies working in the Kurdish region, Deputy Finance Minister Fadhel Nabi in the federal government said on Dec. 30.
The Kurdistan Regional Government won’t resume exports through the central government pipeline network until the federal authorities pay dues owed to international companies working in the Kurdish area, Balou said.
International companies such has Exxon Mobil Corp. (XOM) and Total SA (FP) have been caught in the dispute between the Kurdish authorities and the central government, which doesn’t recognize contracts signed by the KRG without its permission. The tensions have led to previous halts in exports from the Kurdish region and payment delays to companies operating in the area.
Selling Locally
Gulf Keystone Petroleum Ltd. (GKP), which has production in the semi-autonomous area, isn’t exporting crude and sells only in the domestic market, said Henry Lerwill, a company spokesman in London. DNO International ASA (DNO) also sells into the local market, spokesman Tom Bratlie said by phone, declining to comment on whether the company had plans to start moving oil by truck through Turkey in the future.
Kurdish authorities plan to complete oil and gas pipelines running direct to Turkey in the next two years, Natural Resources Minister Ashti Hawrami said Sept. 24. The Kurdish region plans to raise crude output to 250,000 barrels a day this year and 1 million barrels a day in 2015, KRG Prime Minister Nechirvan Idris Barzani said Dec. 3.
To contact the reporters on this story: Nayla Razzouk in Dubai at nrazzouk2@bloomberg.net; Khalid Al-Ansary in Baghdad at kalansary@bloomberg.net
WesternZagros's Kurdamir Contingent Resources Jump to Over 1 Billion Barrels of Oil Equivalent
BeantwoordenVerwijderenPress Release: WesternZagros Resources Ltd. – 3 hours ago
Symbol Price Change
WZR.V 1.21 0.10
CALGARY, ALBERTA--(Marketwire - Jan. 28, 2013) -
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") is pleased to announce a fourfold increase in the Company's contingent resource estimates at the giant oil discovery on the Kurdamir Block in the Kurdistan Region of Iraq. The total mean estimate of gross unrisked contingent resources ("Mean Contingent Resources") at Kurdamir has increased to 590 million barrels of oil ("MMbbl") in the Oligocene and Eocene reservoirs. When gas and condensate are included the Mean Contingent Resources exceed 1 billion barrels of oil equivalent as shown in Table A below. These estimates were audited by independent reserves evaluator, Sproule International Limited ("Sproule").
Simon Hatfield, WesternZagros's Chief Executive Officer commented,
"There's a saying in the oil industry: big fields get better with time, and Kurdamir is proof of that. The Kurdamir structure has the potential to be the largest light oil field discovered in Kurdistan, with the possibility that it extends on to our neighbouring Garmian Block. We're therefore highly motivated to drill the Kurdamir-3 well on the Kurdamir Block and the Baram-1 well on the Garmian Block this year to further delineate this giant discovery."
Table A: Mean estimates of the gross unrisked contingent and prospective oil and oil equivalent resources in the Kurdamir Block as of January 23, 2013. The resources presented are the gross volumes estimated for the indicated reservoirs without any adjustments for the Company's working interest or encumbrances.
Kurdamir Block Reservoir
Category Oligocene Eocene Cretaceous Category Total
Contingent Resources Oil (MMbbl) 435 155 590
Contingent Resources Oil & Gas (MMBOE) 786 226 1012
Prospective Resources Oil (MMbbl) 939 107 130 1176
Prospective Resources Oil & Gas (MMBOE) 1139 138 206 1483
2)
BeantwoordenVerwijderenThe Mean Contingent Resources in the Oligocene reservoir at Kurdamir have increased to 435 MMbbl of oil from the previously announced 147 MMbbl. When gas and condensate are included the Mean Contingent Resources in the Oligocene equal 786 million barrels of oil equivalent ("MMBOE").
This assessment also recognizes contingent resources in the Eocene reservoir on the Kurdamir Block for the first time. Mean Contingent Resources for the Eocene are 155 MMbbl of oil. When gas and condensate are included, the Mean Contingent Resources equal 226 MMBOE.
The corresponding mean estimate of gross discovered petroleum initially-in-place ("Mean Discovered In-Place Resources") increases to 2 billion barrels of oil. When gas and condensate are included, the Mean Discovered In-Place Resources equal 2.8 billion barrels of oil equivalent.
The mean estimate of gross unrisked prospective resources ("Mean Prospective Resources") for the Oligocene, Eocene and Cretaceous reservoirs combined is now 1.2 billion barrels of oil on the Kurdamir Block. When gas and condensate are included the Mean Prospective Resources equal 1.5 billion barrels of oil equivalent. As expected, these prospective resources have decreased from those previously announced primarily due to conversion from the prospective to the contingent category.
This is the fourth successive independently audited upward revision of contingent resources since the Kurdamir Discovery was announced in November 2009. The Company does not assess contingent resources for the Cretaceous reservoir due to insufficient confidence from test data.
Based on reservoir data obtained from the Kurdamir testing program and independent engineering assessments, the Company predicts that sustainable production rates of 7,000 to 11,000 barrels of oil per day are possible for individual wells in the Oligocene reservoir utilizing horizontal drilling and completions technology. These sustainable production rates would follow higher initial flow rates. Horizontal wells will also minimize gas production from the oil leg where it underlies the gas cap.
The operator, Talisman (Block K44) B.V. ("Talisman"), is currently preparing to drill the Kurdamir-3 appraisal well in order to continue delineating the field. The anticipated spud date is early February 2013. In addition, the Company is currently preparing to drill the Baram-1 exploration well on the Garmian Block (see Figure 1). The Baram-1 well has the potential to prove the extension of the Kurdamir Discovery onto the Garmian Block. A 3D seismic program on the Kurdamir Block is also underway. WesternZagros and Talisman each have a 40 percent working interest in the Kurdamir Block with the Kurdistan Regional Government ("KRG") holding the remaining 20 percent.
WesternZagros Revises Resource Estimates for Baram and Kurdamir; Results Highlight Major Potential to be Tested this Year
BeantwoordenVerwijderenMarketwirePress Release: OIL/GAS EXPLORATION UPDATE – 1 hour 15 minutes ago
Symbol Price Change
WZR.V 1.05 -0.02
CALGARY, ALBERTA--(Marketwire - Feb. 11, 2013) -
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has conducted further analysis of the results from the Kurdamir-2 well and provides a revision of its resource estimates for the Oligocene reservoir in the Kurdamir Block, as well as an update for the adjacent Oligocene reservoir in the Baram prospect on the Garmian Block. On the Baram prospect, the total mean estimate of gross unrisked prospective resources ("Mean Prospective Resources") increased by over 300 percent to 423 million barrels of oil ("MMbbl"). When gas and condensate are included the Mean Prospective Resources increased by 90 percent to 496 million barrels of oil equivalent ("MMBOE"). The Company's revised estimates are related to its interpretation that the Baram prospect has the potential to contain the extension of the Kurdamir oil leg in the Garmian Block (see Figure 1). The combined Mean Prospective Resources of the Kurdamir structure in the Oligocene, Eocene, and Cretaceous reservoirs and the Baram prospect in the Oligocene and Eocene reservoirs is now 1.7 billion barrels of oil, or over 2 billion barrels of oil equivalent when gas and condensate are included, as summarized in the table below. All of the revised estimates were audited by independent reserves evaluator, Sproule International Limited ("Sproule"), on February 8, 2013.
Simon Hatfield, WesternZagros's Chief Executive Officer, commented:
"As we understand the giant Kurdamir Discovery better, we are intrigued by the potential that the Baram prospect is an extension of Kurdamir. As such, we expect Baram-1 to be a high impact well and one of the most attractive opportunities on the Garmian Block. One of the rigs we have secured is currently being prepared in North America for deployment to Baram-1 and we anticipate spudding the well in the third quarter of this year."
To view Figure 1: Top Oligocene Depth Structure Map showing proximity of Kurdamir & Baram, please visit the following link: http://media3.marketwire.com/docs/211wzr_fig1.pdf
The Company's interpretation that the Baram prospect is an extension of the Kurdamir structure will be confirmed by drilling and testing the Baram-1 exploration well in 2013.
Iraq’s Kurds to Export Oil by New Pipeline ‘Very Soon’
BeantwoordenVerwijderenBy Grant Smith & Nayla Razzouk - Jun 19, 2013 2:39 PM GMT+0200
Iraq’s Kurds will start exporting crude by pipeline “very soon” after the completion of a new link to the Turkish border by the end of September, the Kurdistan Regional Government Natural Resources Minister said.
The pipeline to Fishkabour near the frontier with Turkey, will eventually have a capacity of 1 million barrels a day by 2015, Ashti Hawrami said today at a conference in London. The semi-autonomous region in northern Iraq is “well on its way” to have enough oil to fill the line’s capacity, he said.
The landlocked, self-governed Kurdish enclave halted crude exports through the Iraqi central government-run pipeline since December. The Kurds are sparring with the Oil Ministry in Baghdad over the sharing of revenue from crude sales and payments owed to international companies with investments in Kurdish oil fields such as DNO International ASA (DNO) and Genel Energy Plc. (GENL) The KRG plans its own oil and natural gas pipelines through neighboring Turkey as a step toward economic self-sufficiency.
When asked, Hawrami didn’t confirm whether the KRG would be using the Iraqi central government’s export facilities in Fishkabour or building its own.
“If the Kurds go ahead with the exports to Turkey, it will have a big implication,” Robin Mills, head of consulting at Dubai-based Manaar Energy Consulting and Project Management, said in a telephone interview. “They want to develop their oil and they’ve been struggling to do that because of the problems of getting paid and the problems of having consistent exports, so they kind of see this as the only way to go ahead.”
Trucking Oil
The Kurdish region is currently exporting 30,000 barrels a day by truck to Turkey. Its oil-production capacity is due to increase to 400,000 barrels a day by the end of the year from a current 300,000 barrels a day, Hawrami said.
The Kurds will start crude production from six more oil fields by the year-end, Hawrami said. The region has awarded five oil exploration blocks to a Turkish entity, he said, without identifying it.
“With this pipeline it puts the groundwork in place for the deal with Turkey,” Mills said.
The KRG will also begin exporting natural gas to Turkey in 2016, Hawrami said.
Iraq has the world’s fifth-largest crude reserves, according to data from BP Plc. (BP/) The country revised its own estimate upward in April by almost 5 percent to 150 billion barrels. The nation’s Kurdish region holds an additional 45 billion barrels, according to the KRG. Iraq produced 3.15 million barrels a day in May, data compiled by Bloomberg show.
Gulf Keystone to pump 40,000 bpd Kurdish oil within coming weeks
BeantwoordenVerwijderenARBIL, Iraq, June 26 | Wed Jun 26, 2013 3:15am EDT
(Reuters) - Gulf Keystone Petroleum will produce 40,000 barrels of oil per day (bpd) within the coming weeks after the Iraqi Kurdistan-focused explorer's field development plan was approved, the region's energy ministry said on Wednesday.
Discovered in 2009, the Shaikan field is Gulf Keystone's prize asset, from which it aims to produce as much as 150,000 bpd in the next three years and 250,000 bpd by 2018.
Production from the block will help the Kurdistan region reach its overall oil export targets of one million barrels per day by the end of 2015, and two million barrels per day by the end of the decade.
Gulf Keystone operates Shaikan, in which Kalegran Ltd, a subsidiary of Hungarian oil and gas group MOL, has a stake, as well as Texas Keystone Inc.
In recent months, investor focus has been less on Gulf Keystone's activities in Kurdistan than its ownership of some of those assets, which the company has been defending in a London court battle after it was sued.
Kurdish crude is also the subject of disputes with the Iraqi central government, which rejects contracts signed by the autonomous region as illegal and has withheld payment to companies operating there.
Kurdistan says its right to grant contracts to foreign companies is enshrined in the Iraqi constitution, which was drawn up following the 2003 invasion that ousted Sunni dictator Saddam Hussein.
The Kurds have since passed their own oil and gas law, whilst disagreements among Iraq's Sunni, Shi'ite and Kurdish factions in the national power-sharing government have held up long-awaited hydrocarbons legislation.
Oil Pipeline From Kurdistan Makes Gulf Keystone Target: Energy
BeantwoordenVerwijderenBy Brian Swint - Aug 15, 2013 10:23 AM GMT+0200
Todd Kozel’s adventure in Kurdistan may soon pay off.
The American chief executive officer of Gulf Keystone Petroleum Ltd. (GKP) has dealt with angry shareholders, an ex-business partner’s lawsuit and byzantine politics for six years pursuing billions of barrels of crude in the northern Iraqi region. Now, his $2.5 billion exploration venture is a being called a takeover target as the world’s biggest oil companies look for untapped fields.
Kurdistan is on the verge of an oil boom. The semi-autonomous region of 5.2 million people is completing a pipeline for direct crude exports to Turkey by the end of the year, bypassing central government authorities in Baghdad. The region’s reserves are as much as 45 billion barrels, the local administration estimates, enough to meet U.S. demand for almost seven years.
“Exports are what we’ve been waiting for since 2007, so the pipeline is very big and instrumental for a company like Gulf Keystone,” Kozel, 46, said in a telephone interview. “We are a public company, and consolidation is the next phase in Kurdistan. But that’s not in our plans now.”
Gulf Keystone rose as much as 1.5 percent and traded at 181.5 pence as of 9:03 a.m. in London. The benchmark FTSE 100 index slipped 0.4 percent.
Offers could come soon because the new pipeline may boost the value of the Hamilton, Bermuda-based company by 40 percent, according to HSBC Holdings Plc. Moreover, a ruling is expected within weeks in a London lawsuit brought by a former associate claiming 30 percent of the company’s main asset, Kozel said.
Peer Comparison
Gulf Keystone’s legal dispute has held back its performance against peers this year. The shares have gained 1.6 percent, compared with advances of more than 25 percent for Genel Energy Plc (GENL), WesternZagros Resources Ltd. (WZR) and DNO International ASA. (DNO)
“Gulf Keystone screens quite well as a takeover target once the risk around the court case is removed,” said James Gardiner, an analyst at Peel Hunt in London who gives the stock a buy rating. “They’re sitting on a giant oil field that wouldn’t look out of place in a major’s portfolio.”
Pittsburgh-born Kozel formed his first oil company in 1988 when he was 21 years old. He co-founded Gulf Keystone in 2001 with help from private equity funds from the Middle East. Gulf Keystone started with licenses in North Africa, though it’s now focused on four blocks in Kurdistan and plans to exit its remaining field in Algeria.
Kozel said the company, which has spent $780 million in Kurdistan so far, will be able to fund the development of its fields with cash flow generated once production starts at an initial rate of 40,000 barrels a day this year.
2)
BeantwoordenVerwijderenShaikan Discovery
“The Kurdistan Regional Government is very happy with our plans,” Kozel said. “We can develop Shaikan and our other fields better and possibly faster than others might.”
Exxon Mobil Corp. (XOM), Chevron Corp. (CVX) or an Asian national oil company are candidates to snap up the company, said Dougie Youngson, an analyst at VSA Capital Ltd. in London. Gulf Keystone’s main asset, the Shaikan discovery, one of Kurdistan’s biggest ever, will produce 250,000 barrels a day by 2018, according to the company. That would increase Iraq’s total production by about 8 percent.
Other explorers in Kurdistan such as Afren Plc (AFR), DNO, Petroceltic International Plc (PCI) and WesternZagros may also become takeover targets, according to HSBC.
“There will be a wave of consolidation,” said Peter Hitchens, an analyst at HSBC in London. “All of the small players are potentially targets.”
Tax Dispute
Afren and Petroceltic declined to comment on takeover speculation. Officials at DNO and WesternZagros weren’t available for comment.
Direct exports should strengthen Kurdistan in a dispute over revenue-sharing in which it has struggled to get royalties owed from exports sent through pipelines controlled by the central government in Baghdad.
Kozel must overcome his legal difficulties before a deal is on the cards. Rex Wempen, who served in the U.S. Special Forces in the 1990s, claimed in a trial that began in October that his work led to the Shaikan find.
Last month, Kozel quelled a challenge from investors who said the company wasn’t moving fast enough to upgrade its London listing to the main market and attract more institutional investors. The board appointed four independent directors recommended by the M&G Recovery Fund, a disgruntled shareholder.
Gulf Keystone last year said it would issue 10 million new shares to give to executives if the company or its assets are bought, forcing it to say days later it wasn’t planning a sale after shares rose.
For now, Gulf Keystone says it’s focused on developing Shaikan. Achieving its targets may prove too expensive, said Peel Hunt’s Gardiner.
“Bringing a discovery of this size to meaningful levels of production will require hundreds of millions of dollars of investment,” Gardiner said. “There are a number of options available, but uncertainty remains over access to this level of capital for a company of this size.”
http://www.bloomberg.com/news/2013-08-14/oil-pipeline-from-kurdistan-makes-gulf-keystone-target-energy.html?cmpid=yhoo
Verwijderen
BeantwoordenVerwijderenGulf Keystone Wins Lawsuit Over Ex-Soldier’s Iraqi-Oil Claim
By Kit Chellel - Sep 10, 2013 12:16 PM GMT+0200
Gulf Keystone Petroleum Ltd. (GKP) won a U.K. lawsuit brought by a former U.S. Special Forces captain who sought a stake in the company’s Iraqi oilfields he said was worth as much as $1.6 billion.
The soldier’s company, Excalibur Ventures LLC, didn’t live up to its obligations under a contract with Gulf Keystone to develop the oil fields in Iraq’s Kurdistan region, Judge Christopher Clarke said in a ruling today in London.
Excalibur’s “lack of financial resources prevented it from being able to fulfil its financial obligations” and has no valid claim, Clarke said.
Gulf Keystone’s Shaikan oil fields will produce 250,000 barrels a day by 2018, according to the company. The lawsuit has held back Gulf Keystone’s stock, which had gained 7 percent this year before the verdict, compared with advances for regional competitors of more than 20 percent for Genel Energy Plc and 50 percent for DNO International ASA.
The ruling removes uncertainty for Gulf Keystone shares, which were suspended this morning ahead of the verdict, said Dougie Youngson, an analyst at VSA Capital Ltd. in London.
“People are reluctant to invest when there is ongoing litigation,” Youngson said. “It’s good news for the company and there will inevitably be talk of a takeover now.”
September 10, 2013 12:23 pm
BeantwoordenVerwijderenGulf Keystone wins case over ownership of Kurdistan oil acreage
By Sylvia Pfeifer
Gulf Keystone , the oil and gas explorer focused on Kurdistan, has won a comprehensive victory in a legal dispute over the ownership of its acreage in the country.
The decision, read out in court in London on Tuesday morning sent shares soaring by 25 per cent when they resumed trading and could reignite takeover speculation.
In the case, which has run in London for almost a year, Todd Kozel, Gulf Keystone’s chief executive, had vigorously contested claims by former US Green Beret Rex Wempen and his brother Eric that they were unfairly cut out of deals to acquire acreage in Kurdistan.
Gulf Keystone, alongside Texas Keystone – which originally struck a collaboration deal with the Wempen brothers’ company Excalibur in 2006 – disputed claims that its estranged advisers were owed a 30 per cent interest in blocks in northern Iraq. Excalibur had argued the blocks could be worth nearly $6bn.
In his conclusion, Mr Justice Christopher Clarke dismissed all of Excalibur’s claims. He said the collaboration agreement “does not create, give rise to, or recognise any entitlement of Excalibur to an indirect interest in the Shaikan [block] or any other production sharing contract”.
He went on to note that Excalibur had “consented not to be in the Shaikan” contract and “withdrew, or is deemed to have withdrawn from the bid to be on it”.
He added that if, contrary to his view the agreement did give Excalibur an entitlement, then it was “not ready, willing and able to perform its obligations thereunder in 2007 and 2008, repudiated its obligations under it and was in material breach of it”.
“We are very pleased to have achieved the best possible outcome from the point of view of the company and our shareholders,” said Mr Kozel in a statement, adding that the management would now focus on “progressing the ramp-up in production and development” of the Shaikan field.
Today's court victory means Gulf Keystone Petroleum Limited (LON:GKP) is now a tasty takeover target, says Roland Head.
BeantwoordenVerwijderenGulf Keystone Petroleum (LSE: GKP) shares were suspended until noon yesterday, but more than made up for lost time by gaining nearly 20% when trading started. They've since fallen back a bit, and are now around 16% above Monday's close.
The cause of the temporary suspension was the long-awaited judgement in Gulf Keystone's court battle against its former partner, Excalibur Ventures, which claimed it was entitled to a share of Gulf Keystone's prize asset, the 14bn barrel Shaikan oil field.
Judge Christopher Clarke ruled against Excalibur yesterday, confirming Gulf Keystone's undisputed ownership of its prize asset, and allowing the firm's shareholders to look forward with confidence.
Turning the corner
Earlier this year, Gulf Keystone faced criticisms relating to its corporate governance, legal troubles and lack of progress in bringing Shaikan into production. All of those criticisms have now been addressed, and today's court victory means that the firm's move from AIM to the Main Market later this year should be assured.
The remaining obstacle facing Gulf Keystone, and other major Kurdistan producers, is the region's lack of export infrastructure. This should be addressed later this year, when a pipeline allowing direct exports from Kurdistan to Turkey is due to come into service.
In parallel to this, Gulf Keystone is building out its production infrastructure, and expects to be producing 40,000 barrels of oil per day by the end of the year, and 150,000 bopd by 2015, triggering strong cash flow growth.
Shaikan likely to get bigger
Gulf Keystone's Shaikan field is already a giant, boasting a mean estimate of 13.7bn barrels of oil in place. However, it's quite likely to get even bigger, as Gulf Keystone continues to drill development wells to test the limits of the field.
The firm is currently drilling the Shaikan-7 well, which is expected to complete in spring 2014. If successful, Shaikan-7 could lead to a significant upgrade to Shaikan's resources.
Takeover target?
According to Gulf Keystone, Shaikan is the largest onshore oil development in the hands of an independent operator anywhere in the world. It's an obvious takeover target, especially as Kurdish oil is relatively cheap and easy to extract, compared to offshore oil fields.
Most investors believe that a takeover is the natural end goal for Gulf Keystone, and with both Exxon Mobil and Chevron already present in Kurdistan, plus likely strong interest from Asian national oil companies, a bid might not be far away.
Let vooral op de volgende getallen:
Verwijderenmean estimate of 13.7bn barrels of oil in place
expects to be producing 40,000 barrels of oil per day by the end of the year, and 150,000 bopd by 2015, triggering strong cash flow growth
Als aan het einde van het jaar de pijplijn naar Turkye daadwerkelijk open gaat, kunnen er zeer fraaie dingen gaan gebeuren met olie-aandelen die in Kurdistan werken, o.a. ook met Afren.
en wat met Western Zagros?
BeantwoordenVerwijderenAls de nieuwe pijplijn in gebruik wordt genomen is WesternZagros op de huidige koers een koopje en een overnamekandidaat.
VerwijderenDe recente koersdaling (van ca 1,50 naar ca 90 cent) is naar mijn mening geheel onterecht.
19 September 2013
BeantwoordenVerwijderenGulf Keystone Petroleum Ltd. (AIM: GKP)
("Gulf Keystone" or "the Company")
Half Year Report for the six months ended 30 June 2013
Commencement of Commercial Production from Shaikan
Gulf Keystone, the independent oil and gas exploration and production company with operations in the Kurdistan Region of Iraq, today announces its results for the six months ended 30 June 2013.
HIGHLIGHTS
Operational - to 30 June 2013 and post period end
Shaikan Block (75% working interest; Operator)
· Shaikan Field Development Plan ("Shaikan FDP") was approved by the Ministry of Natural Resources of the Kurdistan Regional Government in June 2013
· The first Shaikan production facility ("Shaikan PF-1"), capable of producing 20,000 barrels of oil per day ("bopd"), was fully commissioned in July
· Shaikan commercial production began in mid-July, with 12,400 bopd achieved by early September
· Gross production from Shaikan PF-1 from 24 July 2013 to 1 September 2013 totalled 183,000 barrels, with 179,063 barrels sold into the domestic market
· Construction of the second Shaikan production facility (PF-2), capable of producing 20,000 bopd, is ongoing; its mechanical completion expected in October 2013, followed by production operations by the end of 2013
· Project initiated for gas compressing equipment required to move beyond the near-tem production target of 40,000 bopd to the initial Shaikan FDP's target of 100,000 bopd
· Drilling of Shaikan-10, the first development well, spudded in July 2013 and is ongoing
· Drilling of Shaikan-7, the first deep exploration well, targeting previously undrilled mid to lower Triassic and Permian horizons, spudded in June 2013 and is ongoing; potential to add between 1 and 5 billion barrels of gross oil-in-place to already discovered resources
· Significant progress made on the development of the regional independent export infrastructure, expected to be completed by the end of 2013
Sheikh Adi Block (80% working interest; Operator)
· Further to the approval of the programme to appraise Jurassic targets and evaluate the Triassic upside, construction of the drilling location for the Sheikh Adi-3 appraisal well is ongoing
· Acquisition of 70km of additional 2D seismic data has been completed
2)
BeantwoordenVerwijderenBer Bahr Block (40% working interest)
· Further to the successful side-track of the original Ber Bahr-1 exploration well in May 2013, the operator's estimates of recoverable reserves are between 50 and 100 million barrels
· Appraisal and early production expected in 2014
· Following the new Triassic oil discovery in January 2013, Bakrman-1 is being side-tracked after an extended well test in the Triassic formation on the Bakrman structure; initial results indicate a significant reservoir
· Commissioning of an extended well test ("EWT") facility for the Bijell discovery is awaiting the completion of the Bijell-1 discovery well as a producer
· Drilling of two additional appraisal wells Bijell-7 and Bijell-2 is ongoing
· Sale process of the Company's 20% working interest in the Akri-Bijeel block continues
Financial - as at 30 June 2013 and post period end
· Loss after tax: $26.4 million (2012: $31.4 million)
· Loss per share: $0.03 (2012: $0.04)
As at 30 June 2013, cash and cash equivalents: $141.2 million (30 June 2012: $130.4 million, 31 December 2012: $253.7 million). As at 16 September 2013, cash and cash equivalents: $101.2 million
Corporate Developments - to 30 June 2013 and post period end
· On 10 September 2013, the English Commercial Court in London dismissed all the claims asserted by Excalibur Ventures LLC ("Excalibur") against Gulf Keystone, two of its subsidiaries (the "Companies") and Texas Keystone Inc. and decided all issues in favour of the Companies and Texas Keystone Inc.
· Gulf Keystone engaged Deutsche Bank AG, London Branch to act on an exclusive basis in connection with the proposed move from AIM, a market operated by the London Stock Exchange, to the standard segment of the Official List, which is expected to be completed before the end of 2013
· Simon Murray, C.B.E. was appointed Independent Non-Executive Chairman of the Board
· Five additional Non-Executive Directors were appointed to the Company's Board and search process for one other independent Non-Executive Director is on-going
OUTLOOK
· Increase production from the Shaikan PF-1 to 20,000 bopd by the end of 2013 to generate steady revenues
· Complete, commission and start production at Shaikan PF-2, ramping up production to additional 20,000 bopd, following the completion of flowlines to connect PF-2 to the Shaikan-2, -5 and -10 wells
· Apply cash-neutral approach to growing operations, including the development drilling campaign to drill up to eight wells on Shaikan in 2014 and investment decisions on additional Shaikan production facilities (PF-3 and -4)
· Obtain and evaluate results of the Shaikan-7 exploration well, targeting deeper Triassic and Permian horizons in the Shaikan block
· Appraise the Sheikh Adi discovery and continue to target additional exploration prospects on the block
Todd F Kozel, CEO of Gulf Keystone, commented:
"As a result of having the Shaikan FDP approved, and in line with the Kurdistan Regional Government's stated production targets for the Shaikan discovery, we are delighted to have entered the first phase of commercial production, which was eagerly awaited by the Company's shareholders. It is an important milestone and another highlight of the four years of hard work since striking oil in August 2009. With the protracted Excalibur litigation behind us and the key uncertainty about the Company's future removed, we are working hard to deliver on all of our stated objectives and are very pleased to have appointed Deutsche Bank to advise the Company on achieving our goal to move to the Main Market by the end of 2013."
Hayward Says Completed Pipeline Turning Point for Kurdistan
BeantwoordenVerwijderenBy Brian Swint - Oct 25, 2013 11:00 AM
Tony Hayward, the former BP Plc chief executive officer who now heads Kurdistan’s largest oil producer, said an export pipeline to Turkey is built, marking a turning point for the self-governing region of northern Iraq.
“The Kurdistan Regional Government has completed a 36-inch pipeline,” Hayward, CEO of Genel Energy Plc, said in a telephone interview yesterday. “The line has now been tied in and commissioning is taking place. This is a major inflection point for Kurdistan.”
Kurdistan, whose economy has boomed with oil exploration since the fall of Saddam Hussein in 2003, estimates its reserves at 45 billion barrels, enough to meet U.S. needs for almost seven years. The new pipeline provides unhindered access to international markets for the first time after years of disputes with the government in Baghdad over export revenue.
While Hayward said Genel is already sending about 50,000 barrels of oil a day on trucks to Turkey, where it receives higher prices than in the domestic market, the pipeline will have capacity of about 300,000 barrels a day.
Genel shares reversed earlier losses, to gain as much as 0.8 percent. The stock traded at 973 pence as of 9:53 a.m. in London. DNO International ASA, a Norwegian producer in the region, climbed as much as 1.3 percent to 16.18 kroner in Oslo.
The Kurdistan pipeline joins Iraq’s main export pipeline to Turkey after a Baghdad-controlled metering station, Hayward said. That will give the Kurds full control, bypassing the federal government.
Track Record
The pipeline will become operational by the end of the year, Ashti Hawrami, the KRG minister of natural resources, said on Oct. 3. The KRG signed a deal in April to sell oil and gas directly to Turkey. Turkey also set up a state oil company that has taken stakes in Kurdish oilfields, Hayward said.
“There are always risks, but you have to look at the track record of delivery,” Hayward said. “That gives me confidence that the agreement between Turkey and the Kurdistan region is being followed through.”
The KRG halted crude exports through the government-run link in December amid disputes with the Oil Ministry in Baghdad over revenue from crude sales and payments owed to companies such as DNO and Genel. Hawrami said that the region will export 1 million barrels a day by 2015 and 2 million barrels a day by 2019.
KRG oil revenues to cumulate in US bank
BeantwoordenVerwijderenARBIL - Anadolu Agency
Baghdad and Arbil have agreed on accumulation of Kurdish oil revenues in an account, which was opened in US bank JPMorgan, despite Ankara’s insistence on depositing the money in Turkish state-run lender Halkbank, according to media reports quoting sources
Despite Turkish government’s desire to collect Kurdish oil money in Halkbank, central and regional Iraqi government has agreed to save in an Us bank. AFP photo
Revenues from Kurdish oil, which is to be exported to world markets via Turkey, will be deposited in a New York-based bank account of the Development Fund of Iraq (DFI), sources have said.
Iraqi Prime Minister Nuri al-Maliki and Kurdistan Regional Government (KRG) Prime Minister Nechirvan Barzani reached a resolution in Baghdad over their differences on oil exports on Dec. 25, Anadolu Agency reported.
The deal stipulates that oil revenues from Kurdish-controlled regions will go to the DFI account which was created at JPMorgan Chase in New York in 2003 at the request of the United Nations, instead of Turkish state-owned lender Halkbank.
Barzani broached the issue of depositing the oil money in a U.S. lender during a visit to Ankara at the end of November.
According to a statement from the office of al-Maliki’s deputy for energy, Hussein Shahristani, both sides agreed to export Kurdish oil through the State Organization for Marketing of Oil (SOMO), the company responsible for marketing Iraq’s oil.
Meanwhile, al-Maliki’s media adviser, Ali Musawi, said the two parties had reached a consensus on establishing a committee for the resolution of problems between the two governments and that the committee would convene at the end of 2014 to end the issues.
The revenues will later be distributed to the relevant parties via Iraq’s central budget, the statement said.
Hasan Özmen, a parliament for Diyala province, told Anadolu Agency that the revenue from the oil which is to be exported via Turkey through a newly finished pipeline would also be deposited in the DFI account.
Özmen said the account was originally established to ensure the equal distribution of revenues.
Turkey recently signed an agreement with the KRG for the establishment of a separate 300,000-barrel capacity pipeline.
On Dec. 23, Turkish Energy Minister Taner Yıldız said test flows for northern Iraqi oil had been completed up to Ceyhan, a coastal district in the Mediterranean province of Adana, adding that the oil would begin to flow after the tests.
Until recently, Baghdad had expressed its explicit opposition to the autonomous Kurdish region’s direct oil deals with foreign companies and the export of Kurdish oil and gas to Turkey.
December/30/2013
Read more at http://www.stockhouse.com/companies/bullboard/v.wzr/westernzagros-resources-ltd?postid=22045387#bVhxg1YFSXDtY7ey.99
THE ROAD TO 1 MILLION BARRELS PER DAY...thanks to MacPithy
BeantwoordenVerwijderenhttp://mnr.krg.org/images/pdfs/The_road_to_1_million_barrels_per_day_map_1.pdf
Read more at http://www.stockhouse.com/companies/bullboard/v.wzr/westernzagros-resources-ltd?postid=22045372#qpcTWDPUxWTWEs8T.99
Iraqi Kurds export first heavy oil to global market
BeantwoordenVerwijderenTue Dec 31, 2013 1:43pm GMT
Gulf Keystone Petroleum Ltd
GKP.L 173.75p +0.50+0.29%
* KRG sells first cargo of Shaikan heavy crude
* Gulf Keystone operates Shaikan oilfield
* Taq Taq oil going into new pipeline for exports
By Julia Payne
LONDON, Dec 31 (Reuters) - Iraq's Kurdish region has started exports of heavy crude to world markets, traders and industry sources said, a further step to wrestle more control of its lucrative oil sector from the central government in Baghdad.
Trucked through Turkey to a waiting tanker, the sale of Shaikan crude comes just ahead of planned exports of light crude Taq Taq via a new pipeline.
The Kurdish Regional Government (KRG) began selling its oil independently of Baghdad in 2012, first with very light oil condensate, followed by Taq Taq, produced by London-listed oil company Genel.
These exports enraged Baghdad, which considers them smuggling as selling oil falls is handled by under the purview of Iraq's State Oil Marketing Organization (SOMO).
Talks are underway between Iraq and the Kurds to find an agreement over oil exports and revenue sharing, after Arbil and Ankara signed a multi-billion dollar energy package at the end of November, including gas pipelines and exploration deals. Iraq's oil minister said Baghdad would retain control over the oil revenues.
But despite Baghdad's threats of legal action against potential buyers over the last year, the KRG has moved ahead with exporting Shaikan, the first international exports for AIM-listed Gulf Keystone in Kurdistan.
Trading company Powertrans, an intermediary used by the KRG to export its oil from Turkey, has sold a 30,000 tonne cargo of Shaikan loading Jan 6-10, trading sources familiar with the matter said.
The cargo will load at the Delta Rubis terminal at Dortyol on Turkey's bay of Iskenderun, one of the sources said.
Details of the ultimate buyer were unclear as a trader was re-offering the grade.
The Shaikan oilfield is operated by Gulf Keystone, with Hungarian MOL holding a 20 percent interest. Commercial production began in July 2013 with an initial capacity of 10,000 barrels per day (bpd) and output is expected to reach 40,000 bpd in early 2014.
Gulf Keystone was not immediately able to provide a comment to Reuters after several enquiries.
Taq Taq crude is being tested in a newly completed pipeline that links Kurdish oilfields to the Turkish border and then into an existing pipeline already exporting Kirkuk crude for state marketer SOMO to the port of Ceyhan.
The oil successfully reached the Turkish port of Ceyhan for the first time last week.
Genel Rises to Record as Kurdistan Starts Pipeline
BeantwoordenVerwijderenBy Brian Swint Jan 9, 2014 11:16 AM GMT+0100
Genel Energy Plc (GENL), the biggest oil and gas operator in Kurdistan, rose to a record after the semi-autonomous region of Iraq said it will sell its first crude through a new pipeline to Turkey this month.
Shares in the company run by former BP Plc (BP/) Chief Executive Officer Tony Hayward rose as much as 6 percent and traded up 5 percent at 1,133 pence as of 9:46 a.m. in London trading. The stock has surged 46 percent since the beginning of last year.
The Kurdistan Regional Government said yesterday that the first 2 million barrels of crude to pass through the pipeline will be sold at the end of January. The new export route gives Kurdistan its first unfettered access to international markets after years of disputes over oil payments with the federal government in Baghdad.
The sale announcement “provides confidence that the prospect of pipeline exports are becoming an increasing reality,” Deutsche Bank AG analysts led by Lucas Herrmann said in an e-mailed note. “Our 2014 production and earnings estimates for Genel assume a gradual ramp-up of exports.”
Norway’s DNO International ASA (DNO), which holds a stake in the Tawke field with Genel, also rose to a record today before pairing gains to 24.86 kroner, up 2 percent, at 10:57 a.m. Oslo time. Gulf Keystone Petroleum Ltd. (GKP), holder of the Shaikan field, advanced after saying it will start exporting by truck.
The pipeline will carry 4 million barrels of oil to Turkey in February and 6 million by the end of March, with shipments rising to 10 million to 12 million barrels a month by December, the KRG said in a statement on its website. The initial shipments are from Tawke, and crude from Taq Taq will be added later.
Shares Rebound
Investors including Hayward and financier Nathaniel Rothschild bought Genel, a Turkish company, in 2011 with more than $2 billion raised through an investment vehicle in an initial public offering. After slumping to as low as 595 pence in June 2012, the shares exceeded the IPO price of 1,000 pence in November last year.
Iraq, the second-largest producer in the Organization of Petroleum Exporting Countries, exported 2.4 million barrels a day in November, according to the Oil Ministry. The Kurds had been sending as much as 50,000 barrels a day by truck into Turkey before the pipeline became operational.
Read more at http://www.stockhouse.com/companies/bullboard/v.wzr/westernzagros-resources-ltd#d0WpvCcFjgGpiDy2.99