Turkey moves on Kurdish oil fields

ERBIL, Iraq, June 30 (UPI) -- Turkey's Dogan Enerji acquired a stake in two companies formed to develop oil fields in the northern Kurdish regions of Iraq.

The $80 million investment with Swiss and U.A.E. institutional investors will work to explore and develop oil fields in Erbil and Khalakan in the northern Kurdish provinces of Iraq.

Erbil fields are scheduled to start pumping oil in 2010, with test drilling slated for Khalakan soon after.

The Kurdistan Regional Government in Iraq began oil exports from its Taq Taq and Tawke oil fields beginning June 1, depositing the revenue in federal coffers.

The Turkish deal comes on the heels of the acquisition of Addax Petroleum Corp. by China Petroleum Corp., or Sinopec, to secure a position in the Taq Taq field.

DNO International and Turkey's Genel Enerji are licensed for the Tawke field.

Bobby Sarkar, an equity research official at the Dubai-based al-Mal Capital, told Turkey's Hurriyet news service the push into Iraqi Kurdistan was a boon for the regional energy sector.

"The region possesses significant untapped reserves, which could be harnessed to not only meet local demand but used for substantial export-driven income," he said.

Baghdad, meanwhile, expected major investments to develop Tuesday for eight service contracts in oil and gas fields throughout the country, but failed to secure deals in volatile Diyala province with other bids falling short of expectations.