Oil & Gas Companies: News for Oil & Gas and Hydrocarbon Industries  Membership Services »
Gulf Oil and Gas grow your business
Home News Events Projects Tenders Unconventionals community | My Account Gulfoilandgas rss feed Follow us on Facebook  Jobs 
Products and vendors Services and providers Oil & Gas Software and publications

Addax Announces Update on Discussions With KRG Amendments to the PSC for the Taq Taq License Area

Source: www.gulfoilandgas.com 2/29/2008, Location: Middle East

Share |

Addax Petroleum Corporation confirmed that it has signed an agreement with the Kurdistan Regional Government (“KRG”) amending the production sharing contract it holds together with Genel Enerji in respect of the Taq Taq license area in the Kurdistan Region of Iraq (the “Taq Taq PSC”). The Taq Taq license area includes the Taq Taq field and the Kewa Chirmila prospect. The purpose of the amendments is to bring the Taq Taq PSC into conformity with the Oil and Gas Law of the Kurdistan Region – Iraq (the “Oil and Gas Law”) and Model PSC, including the royalty, cost recovery and profit share components.

Addax Petroleum’s President and Chief Executive Officer, Jean Claude Gandur, said: “We are pleased to be working closely and in a spirit of cooperation with our partners at the KRG to arrive at a result that is beneficial to all parties. The new terms of our Taq Taq PSC are now in line with the recently enacted legislation and our stakeholders will be pleased to know that our economic and operational interest is materially unchanged. The results from our appraisal campaign at Taq Taq to date have been extremely positive and we are encouraged by the exploration potential we are uncovering through seismic surveys. We look forward to continued strong relations with the KRG as we seek to implement a full field development program with the potential of first oil as early as next year.”

The review and renegotiations were conducted between the KRG, Genel Enerji and Addax Petroleum in accordance with Article 54 of the Oil and Gas Law which required review of the Taq Taq PSC by the Regional Council for the Oil and Gas Affairs of the Kurdistan Region – Iraq (the “Regional Council”), taking into consideration the prevailing conditions when the Taq Taq PSC was originally entered into.

The most significant changes to the terms of the Taq Taq PSC include i) the combination of previously separate terms for the Taq Taq and Kewa Chirmila areas, including the synchronization of the government back-in rights at up to 20 per cent, ii) a reduction in the maximum Cost Oil recoverable in a given year, which is partially offset by an effective increase through an interim period that accelerates the recovery of the initial capital investment by the Contractor, and iii) the introduction of a “R factor” in the Profit Oil calculation, which adjusts the financial returns to the Contractor and Government based on relative level of cumulative capital spending and cumulative revenue. The ultimate financial impact of the amendments to the terms of the Taq Taq PSC is dependent on operational outcomes, including reserve, production and cost levels. However, the Corporation believes that under most of the likely scenarios and considering the further exploration potential of the PSC area, the amendments do not result in a material change to the financial or operational interests of Addax Petroleum.

Oil & Gas Companies News in Iraq >>

Middle East Oil Supply in October 2014
Bahrain >>  10/22/2014 - Middle Eastern oil production is estimated to decline by 20 tb/d in 2014 to average 1.34 mb/d, a downward revision of 30 tb/d from the previous month....
INPEX Commences Oil Production from Umm Lulu Oil Field
  United Arab Emirates >>  10/17/2014 - INPEX announced that, through its wholly-owned subsidiary, Japan Oil Development Co., Ltd. (JODCO), it commenced oil production from the Umm Lulu Oil ...

NEOS Begins Lebanon Airborne Geophysical Acquisition
Lebanon >>  10/16/2014 - NEOS GeoSolutions, Inc. has received, with the full support of its local partner Petroserv SAL, all the necessary permits and begun airborne acquisiti...
Qatar Petroleum Awards Contract for Dukhan
Qatar >>  10/16/2014 - Qatar’s leading facilities management company, Cofely Besix Mannai Facility Management (CBMFM), has been awarded its first contract by Qatar Petroleum...

KS Discoverer 1 to Stay in Kurdistan
  Iraq >>  10/14/2014 - Atlantic Onshore Services BV, a subsidiary of KS Drilling Pte Ltd (KS Drilling), has signed a new contract with OP Hawler Kurdistan Limited (formally ...
Middle East Oil Demand in October 2014
Saudi Arabia >>  10/13/2014 - In Saudi Arabia, August 2014 oil demand was characterized by a substantial increase of 0.31 mb/d or around 13% y-o-y, with total oil demand reaching ...



Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Iraq Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |

More News

Oil & Gas Projects in Iraq >>

Oil & Gas Companies in Iraq >>

Related Links

Countries Quick Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas E-Marketplace - Promote your Business - About Us
Copyright © Universal Solutions All rights reserved. Privacy Policy. - Contact Us