Sterling say cash flow will increase by 400% in 2006

"The compromise is the region will have a say on selecting the companies, selecting the proposals, but approval will be the central government," Bayati told UPI".

Let me just explain why the above passage could be good for Sterling, and why I said before that it was in Sterlings interest to delay any announcement about a PSC.
When there was dissagreement between the Kurdish and Federal governments, one of the things that was being threatened by Baghdad was that if deals were struck with companies in Kurdistan, those companies would then not be considered for any projects in the south. Furthermore those companies would not be allowed to use the southern export routes. It is therefore highly beneficial for Sterling that there is agreement between both governments expecially as there was some talk at one stage about joint projects with Petrol Resources in southern Iraq.
In my previous post the article states that discussions are 90% complete and the passage above would indicate that a compromise is near. If this is the case then we are not far away from getting this oil law away.
Sterling have already had talks with the Kurdish government, and if that government is then allowed to choose the companies and the proposals then we may indeed be not far off a PSC announcement, especially as the Kurdish government have stated before that PSC`s will be announced as soon as the oil law gets passed. With agreements of both governments that would then allow Sterling to go after licences or partnerships in the south when the conditions allowed. The resolution of the Kirkuk situation by referendum in Dec 2007 may also open up opportunities for Sterling.
Its early days but if the above compromise is agreed upon then it could work out to be the best deal allround.