Kurdistan Regional Government
MON, 17 JUN 2019 01:52 Erbil, GMT +3

KRG signs five more petroleum contracts

MON, 12 NOV 2007 13:47 | KRG Cabinet

KRG signs petroleum contracts with affiliates and subsidiaries of TNK-BP, Korea National Oil Corp, Hillwood, Sterling Energy, Aspect Energy

12 November 2007
Erbil, Kurdistan Region, Iraq

Following the unanimous decisions of the Regional Oil and Gas Council (“the Council”) of the Kurdistan Regional Government (KRG) at its second and third meetings, Dr Ashti Hawrami, the KRG Minister for Natural Resources, today announced that the five production sharing contracts (PSCs) previously approved by the Council have been signed by the KRG with TNK-BP affiliate Norbest Limited, with a Korean consortium headed by Korean state-owned oil company KNOC, with Hillwood International Energy company HKN Energy, and with subsidiaries of UK-listed Sterling Energy LLC and Denver-based Aspect Energy LLC.

“These five PSCs are yet another clear expression of confidence in the strength and stability of the Kurdistan Region,” said Dr Hawrami, “and they produce very comprehensive returns for the people of Iraq.”

The Council had approved these contracts at its earlier meetings, with today’s announcement following formal signing ceremonies in Erbil, the capital of the Kurdistan Region, on Saturday 10 November and Monday 12 November.

Completed contracts
The Prime Minister of the Kurdistan Region, Nechirvan Barzani, executed the five new PSCs on behalf of the Council, together with Minister Hawrami.

  • Award of one PSC for four blocks comprising the Hawler Contract Area (of 1,532 square kilometres) in Erbil Governorate, to Norbest Limited, an affiliate of TNK-BP. The Hawler Area comprises blocks advertised in June as K11, K12, K14, K15, and is considered to be a low to medium exploration risk area.

  • Award of the Bazian Block (473 square kilometres) in Sulaimani Governorate to KNOC Bazian Limited, owned by the Korea National Oil Corporation, and Korean private sector oil exploration and development companies SK Energy Co Ltd, Daesung Industrial Co, Ltd, Samchully Co Ltd, Bum-Ah Resource Development Corp, UI Energy Corporation, GS Holdings Corp, and Majuko Corporation. The Bazian Block is a relatively low exploration risk area.

  • Award of the Sarsang Block (1,226 square kilometres) in Dohuk Governorate to HKN Energy Ltd, a Hillwood International Energy company. The Sarsang Block is considered to be a medium exploration risk area.

  • Award of the Sangaw North Block (492 square kilometres) in Sulaimani Governorate to Sterling Energy (International) Limited, a wholly-owned subsidiary of Sterling Energy LLC. The Sangaw North Block is considered to be a low exploration risk area.

  • Award of the Atrush Block (269 square kilometres) in Dohuk Governorate to General Exploration Partners Inc, a wholly-owned subsidiary of Aspect Energy LLC. The Atrush Block is considered to be a low exploration risk area.

    If commercial discoveries are made, these five PSCs will provide an estimated aggregate return/profit of over 85% to Iraq and around 15% to the contractors. The commercial terms of these contracts conform to the term guidelines published by the KRG on its website on 6 November and provide similar returns to Iraq.

    All contracts issued by the KRG are in the form of the Model PSC, also published on 29 June and updated recently after the passage of the Regional Law. Under the five PSCs, the KRG has the right to a participation interest to further increase Iraq’s profit share and has retained the right to assign third party participation interests to qualified Iraqi and international companies to further stimulate the local economy.

    Updated map and commercial guidelines
    A map of the Kurdistan Region contract areas that remain open for negotiation, further updated from the map published on 6 November, can be downloaded here.

    Remaining blocks will, as always, be awarded to the companies which meet the financial and technical qualification criteria established by the Kurdistan Region Oil and Gas Law and offer the people of Iraq the best commercial terms.

    Kurdistan Region in the lead
    After the signing ceremony today, Dr Hawrami said: “In Kurdistan, we are setting an example: this is the first post-Saddam framework for oil investment in Iraq which follows the democratic, federal, and free market principles mandated by the Iraq Constitution. It is the first and the only constitutionally based legal framework to attract investments to Iraq, which is designed for Iraq-wide revenue sharing, an essential element of future stability in Iraq that the Constitution also rightly mandates.”

    “The KRG’s ambition now is for a similar constitutional framework to be adopted in the rest of Iraq. Without such a framework, investors cannot have confidence in contracts issued by authorities in other parts of Iraq,” he added.

    Industry and media inquiries: spokesman(at)krg.org

    Related Articles

    Ministry of Natural Resources announces seven new petroleum contracts for Kurdistan Region, reviews five existing contracts

    TUE, 6 NOV 2007 19:00

    Following the unanimous decision of the Regional Oil and Gas Council ("the Council") of the Kurdistan Regional Government (KRG) at its third meeting on Sunday 4 November, the KRG Minister of Natural Resources Dr. Ashti Hawrami today announced that seven new production sharing contracts (PSCs) have been signed by the KRG.

    KRG Natural Resources Ministry announces new Kurdistan Region petroleum contracts

    TUE, 2 OCT 2007 14:02

    Kurdistan spearheads Iraq oil investment

    The Spokesman
    Kurdistan Regional Government

    2 October 2007
    Erbil, Kurdistan Region, Iraq

    The Kurdistan Regional Government (KRG) Ministry for Natural Resources today announced that the KRG Regional Oil and Gas Council has approved four new production sharing contracts (PSCs) and sanctioned two new refinery projects in the Kurdistan Region in Iraq. The announcement came a day after the Council unanimously decided to award the contracts at its second formal meeting.

    KRG signs oil and gas contract with US-based Hunt Oil

    SAT, 8 SEP 2007 19:08

    Erbil, Kurdistan - Iraq (KRG.org) - The Kurdistan Regional Government (KRG) together with Hunt Oil Company of the Kurdistan Region, a subsidiary of Hunt Oil Company of Dallas, Texas, and Impulse Energy Corporation (IEC) announced today that they have signed a Production Sharing Contract (PSC) covering petroleum exploration activities in the Duhok area of the Kurdistan Region. Under the terms of the agreement, Hunt Oil Company of the Kurdistan Region will serve as operator. This is the first PSC to be signed by the KRG since the Oil and Gas Law of the Kurdistan Region was issued by the Kurdistan National Assembly (parliament) in early August, 2007.

    Ashti Hawrami: Kurdistan Region Oil and Gas Law

    MON, 6 AUG 2007 17:30

    Today is a proud day for the people of the Kurdistan Region. This is a historic moment. In years to come, we will look back and see the passage of this law as a turning point in the fortunes of our Region.

    KRG publishes final Kurdistan Region draft oil law, model contract, exploration blocks

    FRI, 29 JUN 2007 10:55

    The Kurdistan Regional Government (KRG) is pleased to publish the final draft of the Kurdistan Region Petroleum Law in ARABIC and ENGLISH, which has now been approved by the Legal Committee of the Council of Ministers. In its next meeting the Council of Ministers will review the law and is expected to put it to the Kurdistan National Assembly (parliament) for approval.