Norwegian oil company Det Norske Olijelskap (DNO) announced early this week that first test production of oil from Tawke-1 well in Zakho in the Kurdish-controlled area of northern Iraq could start in the first quarter 2007. DNO bypassed the central government in Baghdad and signed a deal in 2004 to explore for oil there directly with the Kurds. Iraqi Oil Ministry sources think DNO has so far failed to stop its work there because of wide differences within the Ministry about how to deal with such a matter. Shiite and Sunni sources at the Ministry mention that DNO enjoys strong support from the American and British embassies in Baghdad, while the Kurds succeed in keeping Shiite leaders out of their affairs. However, Shiite sources suggest that acting Oil Minister Hashem Al-Hashemi has already prepared a detailed report about DNO and its legal problems in Iraq. Al-Hashemi recommends suing DNO. He even suggests banning it from applying for investment projects in central and southern Iraq. Despite this report, the same sources believe the whole issue will be up to a new Iraqi government or to a new Oil Minister.
Iraq Information Report - April 12, 2006 - 7th Year, No 7/789