Iraq's KRG: No deals yet, talks continue

WASHINGTON, Nov. 27 (UPI) -- The recent batch of oil deals signed by Iraq's Kurdistan Regional Government is the last for now though talks with oil firms continue, its oil minister says.

"We continue in our efforts," Ashti Hawrami told United Press International while in Washington. He's meeting with political and business officials here and in Texas over the coming weeks.

The KRG controls three provinces that have little of the proven oil reserves of Iraq's 115 billion barrels, the third-largest reserves in the world after Saudi Arabia and Iran.

There are geologic formations to suggest a crude bonanza, however, and the KRG has signed dozens of production-sharing contracts for exploration blocks, with the goal of producing 1 million barrels per day in five years.

"We are not in a rush signing them off," Hawrami said, "but if we have the right company competing appropriately to serve our policy or targets then there is nothing to hold it up."

The KRG made headlines by signing the first oil deals after the fall of Saddam Hussein. But Baghdad contends only it has the authority to make such deals, calling the 15 signed since September alone "illegal."

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Ben Lando, UPI Energy Editor

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(e-mail: blando@upi.com)