HOUSTON, May 13 - A former Iraq oil minister and Kurdistan's U.S. representative Wednesday hailed an agreement to export Kurdish oil from Iraq and urged U.S. oil companies to seize the moment to help build Iraq's energy industry.
Former oil minister Ibrahim al-Oloum and Kurdistan U.S. representative Qubad Talabany spoke at the 2nd Iraq Oil & Gas Summit in Houston, a conference that brought about 100 Iraqis and U.S. oil industry people together to talk business.
Al-Oloum said the June 1 start of exports of Kurdish oil, agreed upon in recent days, is a major step toward solving disputes between semi-autonomous Kurdistan and the central government over control of oil deals and division of revenues.
"We are seeing eventually and finally, but very gradually, common sense prevailing," Talabany said of the plan to begin exporting 100,000 barrels per day (bpd) from the Tawke and Taq Taq fields starting next month.
Iraq exported 3.5 million bpd at the peak in the 1980s but exports from the war-torn country are now 1.9 million bpd, officials said. The nation's reserves are said to be at least 112 billion barrels, second largest in the world.
Iraqi output could increase to 4 million barrels per day by 2014 and 7 million bpd by 2019 if a long-stalled comprehensive oil law can be passed and policies can be changed to attract foreign investment and technical help, al-Oloum said.
The Kurdistan oil export deal shows all sides recognize the need to get more oil money flowing into the Iraqi economy, even if some issues remain unresolved, he said. "I'm optimistic.
Still, al-Oloum said it is unlikely the comprehensive oil law will be enacted before election of the next Iraqi parliament at the end of the year. Talabany agreed issues remain and declined to predict when the package will pass.
Both said progress is being made.
Al-Oloum cited the first round of bidding for Iraqi oil business, which began last year and is to finish by July. That round focuses on improving existing production. A second round just begun focuses on new field development, he said.
Members of the Iraqi parliament are questioning the validity of key contracts between the Iraqi oil ministry and foreign countries, but al-Oloum said there is enough support for the deals in existing law to protect investors.
Parliamentary issues surrounding a Royal Dutch Shell (RDSa.L) gas-development deal are "being negotiated," al-Oloum said
Al-Oloum also predicted the Nassiriya field development contract will be awarded soon, probably to a Japanese company. Three other field deals, including the south area of the East Baghdad field, likely will follow, al-Oloum said.
Asked whether the current oil minister, Hussain al-Shahristani, is doing a good job, al-Oloum declined comment. "The camera is here," he said of a television news camera. "As a whole, the government is doing a good job."
Former oil minister Ibrahim al-Oloum and Kurdistan U.S. representative Qubad Talabany spoke at the 2nd Iraq Oil & Gas Summit in Houston, a conference that brought about 100 Iraqis and U.S. oil industry people together to talk business.
Al-Oloum said the June 1 start of exports of Kurdish oil, agreed upon in recent days, is a major step toward solving disputes between semi-autonomous Kurdistan and the central government over control of oil deals and division of revenues.
"We are seeing eventually and finally, but very gradually, common sense prevailing," Talabany said of the plan to begin exporting 100,000 barrels per day (bpd) from the Tawke and Taq Taq fields starting next month.
Iraq exported 3.5 million bpd at the peak in the 1980s but exports from the war-torn country are now 1.9 million bpd, officials said. The nation's reserves are said to be at least 112 billion barrels, second largest in the world.
Iraqi output could increase to 4 million barrels per day by 2014 and 7 million bpd by 2019 if a long-stalled comprehensive oil law can be passed and policies can be changed to attract foreign investment and technical help, al-Oloum said.
The Kurdistan oil export deal shows all sides recognize the need to get more oil money flowing into the Iraqi economy, even if some issues remain unresolved, he said. "I'm optimistic.
Still, al-Oloum said it is unlikely the comprehensive oil law will be enacted before election of the next Iraqi parliament at the end of the year. Talabany agreed issues remain and declined to predict when the package will pass.
Both said progress is being made.
Al-Oloum cited the first round of bidding for Iraqi oil business, which began last year and is to finish by July. That round focuses on improving existing production. A second round just begun focuses on new field development, he said.
Members of the Iraqi parliament are questioning the validity of key contracts between the Iraqi oil ministry and foreign countries, but al-Oloum said there is enough support for the deals in existing law to protect investors.
Parliamentary issues surrounding a Royal Dutch Shell (RDSa.L) gas-development deal are "being negotiated," al-Oloum said
Al-Oloum also predicted the Nassiriya field development contract will be awarded soon, probably to a Japanese company. Three other field deals, including the south area of the East Baghdad field, likely will follow, al-Oloum said.
Asked whether the current oil minister, Hussain al-Shahristani, is doing a good job, al-Oloum declined comment. "The camera is here," he said of a television news camera. "As a whole, the government is doing a good job."
