Monday, 11 May 2009

Ambiguity still there...

Norway's DNO International ASA and Canada's Addax Petroleum along with its Turkish partner Genel Enerj have become the first western oil companies to be granted crude export permits from Iraq's central government.

The companies' Monday statements, which announced the formal notifications they received from Kurdistan Regional Government to launch export next month, didn't mention anything about how the terms of their controversial production-sharing contracts, which are rejected by the central government, will be implemented.

Only Addax Pterolum threw a paragraph in its statement in which it prepares the audience for something in the horizon, I guess.

"The crude oil will be marketed by the State Oil Marketing Organization ("SOMO") and revenues will be directed to Addax Petroleum and Genel Energy through the coordination of the KRG on terms to be agreed under the framework of the production sharing contract," it said without elaborating.