BAGHDAD, Nov. 20 (UPI) -- The first foreign firm to enter Iraq's oil market after the war began said a fight over control of Iraq's oil won't harm upcoming the production start.
Helge Eide, chief executive of Norway-based DNO, said production will begin next year from fields in the Kurdistan Regional Government despite a fight between KRG and the central government.
The Iraqi Oil Ministry has said it will decide the fate of deals signed between regions and private companies, citing supreme authority over all Iraq oil.
But the current Iraq Constitution is vague about crude control and the central government has yet to present an oil law.
The KRG has offered a draft bill, which includes methods and boundaries of revenue sharing. No decisions have been made.
"Nobody in central government has told us they are concerned about the legality of these contracts," Eide said.
DNO signed a production-sharing agreement with the KRG and is confident a deal between the central government will be reached.
"We have to rely on KRG to ensure this is in place," Eide said. "According to our understanding they are making good progress."
DNO's Tawke fields are expected to start producing 50,000 barrels per day early next year.
The main export route is on a pipeline from Kirkuk, in the north, to Turkey, but the oil ministry said this weekend attacks have virtually shut down its operation.
DNO said it will build a pipeline to bypass the troubled area.
