Monday, January 15, 2007

DNO scoops more crude while Shell, BP and Exxonmobil are set for 30 years gain

Al Tarra:

The Norwegian Upstream Oil Company, DNO has raised its stake in oilfields in Iraq’s Kurdistan to 55% from 40% in agreement with the Kurdistan Regional Government (KRG).

Currently Iraqi’s Kurdistan is maintaining inflationary pace of close to 100 per cent (average housing @ USD 1000/month and average salaries @ USD 100/month!) The electricity grid has been reduced two hours a day compared with four hours 5 months ago.

Meanwhile, the US-drafted Production-Sharing Agreements (PSAs) for the Oil sector selectively favor Shell, BP and Exxonmobil who are set to take up to 75% of the total profits until they had covered their initial drilling costs. Bear in mind Iraqi’s wells are already dug-in holes and the drilling costs should only include debottlenecking – In the past Iraq had carried out post-wars debottlenecking for the Oil up & down-stream sectors at 25% costs of the total profits!!

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