Petrel Resources - moderated discussion/research part II
g7nicholas - Thu, 22 Dec 05 :
Norway Oil Company Strikes Oil in Iraq
The Associated Press
OSLO, Norway
A small Norwegian oil company said Thursday it struck oil with its first well in a Kurdish area of Iraq in a project that angered some Iraqis.
The well was drilled under a deal between the Kurdish provincial government and oil company Det Norske Oljeselskap AS, usually called DNO, signed in 2004.
The start of the project angered many Sunni Muslims in Iraq, who called it a first step toward Kurdish areas seeking to secede from Iraq.
Less than a month after drilling of the first well started, DNO announced that it had struck oil at a well depth of about 1,150 feet and that drilling would continue to possible deeper reservoirs.
The company did not estimate the size of the find, because more testing was needed, but said the reservoir could be 2,600 feet thick.
Iraqi officials have said the field near Zakho, 250 miles northeast of Baghdad, could have about 100 million barrels of oil reserves.
Shares in DNO, which has a 40 percent stake in the field, soared more than 30 percent to 50.75 kroner ($7.46) per share on the Oslo stock exchange after the announcement.
Iraq's new constitution allows provinces to make their own deals with oil companies for existing reserves, but no regulations for new reserves have yet been written.
DNO managing director Helge Eide earlier told The Associated Press that the company was confident that its deal was in line with the new constitution.
Sunni Muslims, the majority in resource-poor central Iraq, oppose the new constitution because they fear it could lead to Iraq splitting into Kurd, Shiite and Sunni regions.
Kurds make up between 15 to 20 percent of the country's 27 million people, while Shiites make up 60 percent and Sunnis another 20 percent.
