Iraqi Dinar News - Kurdistan seeking to produce 200 thousand barrels of oil daily

2007: Kurdistan seeking to produce 200 thousand barrels of oil daily

October 4, 2007

The German earthquake scientist, who works in Iraqi Kurdistan, near the oil fields of Taq Taq, said, "You can dig anywhere you want and crude oil will flow." For more than two years, foreign companies had searched and discovered oil in Kurdistan region. What they had discovered may not be as giant as the field of Papa Kurkur near Kirkuk, but oil companies and the Kurds are happy to do so. Iraq has 115 billion barrels of oil reserve, but it is believed that its real oil wealth is much higher.

Iraqi Kurdistan and the oil-rich region of Kirkuk are two major areas for the interested because of the large and certain oil reserves which they contain. The three provinces of Iraqi Kurdistan are one of the safest areas in Iraq which form an additional impetus for investors and prospectors. The government of Kurdistan region made exploration in the north, through contracting with international oil exploration companies, and this matter provoked the officials in charg for oil in the central government in Baghdad. The Norwegian company "Wilde Cutter EX Norskh Oljessescab" signed a partnership agreement with the territorial government in 2004 according to which it receives 55% of the two licenses. The Norwegian company will get 30 to 10% of the profits and the rest goes to the territorial government. The company estimated that Tauch field near the town of Dohuk contains 100 million barrels and its utmost production will reach 50 thousand barrels per day next year.

But now it appeared that the field contains much more. The latest operations in the rate of flow of Tauch refer to 12 thousand barrels per day, 40% more than the flow of the other field in the same area. The Norwegian company transports 80 trucks a day carrying 10 thousand barrels from the site. The flow rate may go up to 20 thousand or 25 thousand barrels per day, but the transfer of such quantity by land might be difficult and costly. The second phase of drilling was started in May 2006 in Taq Taq area, south Sulaymaniyah, by the excavation company T.T. Opko and Adax Petroleum Company which is a Swiss- Canadian company. T.T. Opko which has a partnership contract with the company Giniel Energy of Turkey will be digging its fourth well and it is expected to dig two other wells by the end of 2007. Kamal Avarraki, an official in the company, said it is expected that the production of the three wells dug by T.T. Opko will reach 75 thousand barrels per day. The reserve in Taq Taq field is estimated by about 1.2 billion barrels. Other companies are making exploration in the region such as Western Oil Sands and the Canadian Heritage Oil Corp, as well as the British company Sterling Energy.

Kurdistan wishes to produce 200 thousand barrels of oil per day by the end of next year and increase them to one million barrels per day within five years. Although the oil reserve in northern Iraq is not as large as the quantity contained in the southern fields around Basrah, but the Minister of Natural Resources, Ashti Horami said that the region "contains good sources", estimating the reserve by 25 billion barrels of oil and 100 trillion square feet of natural gas.

He also pointed to the establishment of a second export pipeline from Kirkuk to the Turkish port of Ceyhan, passing through the Kurdish controlled region, which will provide a greater protection against sabotage attacks which are striking oil pipelines in other regions of the country. Horami estimated the existence of 10 billion barrels of oil in Kirkuk only and 20 billion barrels in other regions of the north, while the reserve is estimated by 55 billion barrels, or what equals half of the declared Iraqi oil reserve. This means the Iraqi Kurds will possess more oil than Nigeria which is the largest producer of oil in Africa.

Source: Iraq directory

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