Norwegian oil company DNO announced Tuesday details of a permanent agreement with the Kurdistan Regional Government (KRG) to get its payment from oil revenues, according to a statement issued by the company.
The statement, published by Reuters, said: "The share of DNO international company will be allocated from the oil revenues of Tawke oil field (within the limits of Dohuk province) for eight weeks to the KRG for local consumption."

In February the company expected an increase in this year's production after new wells were drilled and production capacity was increased in Tawke field.

The Norwegian company has huge plans for excavations in 2012 and 18 wells are expected to be drilled this year.

The company entered the Kurdistan Region in 2004, and currently has three production contracts in the region. But their contracts, as well as contracts of other foreign companies in the region, are rejected by the federal government in Baghdad which considers them "illegal".

The Kurdistan Region decided to stop all of its oil exports at the beginning of April in protest against Baghdad's non-payment of the dues of foreign companies operating in the region.

The KRG says that Baghdad must pay up to $1.5bn as receivables to companies that produce oil in Kurdistan, while Baghdad agreed to pay only about $560m.

The Kurdistan Region has oil reserves estimated at 45 billion barrels. In 2003 the KRG began presenting the oil fields for foreign investment.













AKnews