http://www.gulfkeystone.com/ The firms exploration programme in Algeria is going well and "the shares look good value", say the Investors Chronicle. Your comments please. goal.

http://www.google.com/hostednews/afp/article/ALeqM5i42TJcw68Y8tFr5oN4juFfrtTGfA?docId=CNG.d0e0071962fb3e6dd7f4c30ba30ff803.301

http://www.rttnews.com/Content/GeneralNews.aspx?Node=B1&Id=1767214

RTTNews) - The United States has urged Iraq to draft a revenue sharing agreement to enable foreign energy firms to invest in the national energy sector in a legally viable and sustainable way.

The call was made by U.S. State Department spokesperson Victoria Nuland at a routine press briefing on Tuesday.

When a reporter sought the U.S. government's response on Exxon Mobil Corp. (XOM: News )'s oil deal with the Kurdish regions of Iraq, Nuland replied that "the United States has advised all of our companies, including ExxonMobil, that want to invest in the Iraqi security sector that they run significant political and legal risks if they sign contracts with any parties in Iraq before there has been a national agreement to work out the complex issues having to do with oil revenue distribution within Iraq."

She noted that "for many years, the United States has been urging all parties in Iraq to enact the necessary national laws that can govern the oil and gas sector because the sooner they do that, the sooner companies can invest in a legally viable way."

She said the U.S. government had advised the country's energy giant to wait for national legislation before signing any deal with the Iraqi oil sector.

When the threat of an Iraqi sanction on Exxon was brought to her notice, the spokesperson said that "our message to the Iraqi government and to all the parties involved in the crafting of national legislation (on a revenue sharing agreement) is that this is overdue, that it is in Iraq's interest to get this done so that companies like Exxon can invest in a way that is legally viable and sustainable."

.... etc ....

General Electric Co. has opened its first three offices in Iraq, extending the conglomerate's involvement in infrastructure projects in the war-torn nation.

The new offices are located in Baghdad, in southern oil-and-gas hub Basra and in Erbil, which is located in the Kurdish region in the north.

"Iraq's economy holds enormous potential, but a sustained growth will require fixing the country's battered infrastructure as well as investing heavily in the industrial and government sector," the company said Monday.

The move comes as U.S. military involvement is winding down. President Barack Obama in October announced he would bring all U.S. forces home from Iraq by the new year, ending a war that stretched nearly nine years.

While the first of their kind, GE's office openings in Iraq follow more than 40 years of company involvement in the country. In its release Monday, GE cited a host of its products playing a role in the nation's infrastructure projects.

The company said more than 130 of its gas turbines feed Iraq's power grid, helping to limit the impact of chronic electricity shortages. In another instance, GE said refineries, petrochemical plants, and municipalities in the country are using the company's advanced waste-water treatment plants.

GE said it plans to recruit more than 200 Iraqi nationals.

"We will support the country's economic diversification and partner in infrastructure development through public and private partnerships," said GE Vice Chairman John Rice.

The company has lately been working to refocus on its industrial roots, plans that have seen the conglomerate undertake a spate of acquisitions aimed at expanding its energy infrastructure business.

US Position On Iraq Oil Deals Misrepresented
23/11/2011 By HAWAR ABDULRAZAQ ALI

ERBIL, Iraqi Kurdistan -- The US State Departments position on oil exploration contracts signed with Iraq have been misunderstood and misrepresented, analysts said yesterday after it was claimed that the US had warned its oil companies about signing deals with the Kurdistan Region.

In fact the US state department position on US oil companies signing contracts in Iraq has not changed and was repeated yesterday by spokeswoman Victoria Nuland.

She said US companies had been advised as a general principle about the risks of signing deals with any parties in Iraq until a new federal hydrocarbon law and revenue sharing law is in place.

"The United States has advised all of our companies, including ExxonMobil... that they run significant political and legal risks if they sign contracts with any parties in Iraq before there has been a national agreement," on how to distribute oil revenue, Ms Nuland said yesterday.

ExxonMobil, which has business in the south of Iraq, recently signed a deal with the KRG to explore for oil in 6 areas, prompting a furious reaction from the oil ministry in Baghdad.

According to a senior industry analyst, who spoke to Rudaw on the basis of anonymity, the phrase any parties in Iraq was deliberately crafted by US officials to avoid the singling out of the KRG and also to cover the signing of deals with the federal government.

Headlines such as todays AFP story US warns of risks in Iraqi Kurdistan oil deals are misleading and misrepresent what the state department actually said, the analyst said.

In London for a conference on Iraq on Tuesday, Deputy Prime Minister of Hussein al Shahristani said Baghdad was considering imposing sanctions on Exxon Mobil after its decision to sign a deal with the KRG.

But a few eyebrows were raised when he claimed that the US government supported his position. "The Iraqi government is considering sanctions, and will inform the company before they make a public announcement," he said, adding the United States government had been unaware that Exxon had been in negotiations with the Kurdish authorities.

"The position of the US government has been that they were unaware of it and if they had been asked, they would have obliged (Exxon) to get approval of the Iraqi government." Sharistani was quoted as saying.

Critics wondered why Shahristani would choose to speak on behalf of the Americans.

He is a self-appointed energy supremo for Iraq, now he is a self-appointed spokesman for the US, said the Iraqi oil analyst.

However, the state department spokeswoman said that US policy on all Iraq oil deals was consistent.

"For many years, in fact, the United States has been urging all parties in Iraq to enact the necessary national laws that can govern the oil and gas sector," Nuland said. "The sooner they do that, the sooner companies can -- can invest in a legally viable way."

This was a repetition of the stance taken on November 14 by another State Department spokeswoman Nicole Thompson.

She said: It is in the interests of all Iraqi parties to enact a set of national laws to govern the oil and gas industry and to develop a revenue-sharing system thats equitable. One those laws are approved they would provide a strong, modern legal basis for Iraqs hydrocarbon sector and it would allow Iraq to develop its substantial resources for the benefit of all Iraqis.

Some officials in the federal government, including Shahristani, have claimed that the Exxon deal with the KRG is in breach of Iraqi laws.

But in the absence of a federal hydrocarbon law, it is not clear which laws Erbils opponents are talking about.

Shahristanis advisors often appear to refer back to the laws of the Saddam era.

However, Article 13 of Iraqs new permanent Constitution renders such legislation void.

The Constitution, which proclaims its own supremacy, provides:

"First: This Constitution is the preeminent and supreme law in Iraq and shall be binding in all parts of Iraq without exception.

Second: No law that contradicts this Constitution shall be enacted. Any text in any regional constitutions or any other legal text that contradicts this Constitution shall be considered void."

The deals with Exxon were signed under Kurdistans Oil and Gas Law which was passed by the Kurdistan Regional parliament in 2007. That parliament and the Region is recognized in Iraqs permanent federal constitution. Oil and gas are not listed as one of the exclusive powers of the federal government, and regional laws have supremacy whenever there is a clash with federal laws.

Said the oil analyst: It is ironic given the mood for decentralization sweeping the region that some in Baghdad appear to want to go back to centralized control. They dont realize that the age of the dinosaurs is over.

Time Guy's Time

Excellent Opportunities, but the Door is Closing
Posted on 24 November 2011.

The ExxonMobil controversy has dominated the business headlines in Iraq over the past week, and while it is very significant and politically sensitive situation, we should not allow it to distract us from the big picture the accelerating progress in development of the country.
Three quotes from this weeks Iraq: Untapped Opportunities conference in London, and from the newly-launched The New Iraq: 2012 Discovering Business guide, perhaps sum up the situation best:
Dr. Sami Al-Araji, Chairman of the National Investment Commission:
Our Five Year National Development Plan for 2010-2014 targets economic growth of 9.4% per year, with projects worth up to US$186 billion the sky really is the limit for investors.
Philip Kennedy, Managing Director of Eschmann:
If anyone is reluctant to enter the Iraqi market, for us it has been a wonderful transformation and Id encourage companies to take up the challenge.
Robin Ord-Smith, UK Trade and Investments (UKTI) Iraq Director:
There are excellent, excellent opportunities but the window is closing.
Can we be any clearer about it?

nice one nice one :-)))

raq postpones the conclusion of a gas deal with Shell and Mitsubishi, for technical reasons
November 24th, 2011 09:03 am Posted in NEWS (Iraq & World Currency)

Baghdad, November 24 (Rn) The Iraqi Oil Ministry, the postponement of a final contract with Shell and Mitsubishi, to collect the associated gas from southern oil fields worth about $ 17 billion.

And was scheduled to conclude a contract on Thursday but was postponed to next Sunday, the ministry said that the delay was due to technical obstacles.

He said the ministry spokesman Assem Jihad told the Kurdish news agency (Rn) that the South Gas Company signed Sunday a contract with a consortium of Shell and Mitsubishi Gas Company to establish a Basra.

Jihad said that technical obstacles concerning the entry of representatives of companies to Iraq and delayed visa (visa) led to the postponement of the conclusion of the contract to the next Sunday.

The Iraqi government announced on 16 this month, it agreed to the contract signed by the initials in the June 12 last with Shell and Mitsubishi, to collect the associated gas from southern oil fields.

The agreement will help the development of which has a term of 25 years to collect more than 700 million cubic feet per day of gas currently being burned in three southern fields as Rumaila, Zubair, West Qurna.

Under the contract will be a joint venture, named Basra Gas Company at the forefront of Iraqs plans to modernize power plants and promote exports of oil, the Iraqi government will own 51 percent of the project compared to 44 per cent of Shell and the rest of the Mitsubishi.

Indicates a summary of the formal agreement published by the Reuters to the unit to export liquefied natural gas worth $ 4.4 billion in addition to $ 12.8 billion is the estimated cost of rehabilitation of gas facilities, existing and building new facilities, but does not mention the potential date for the construction of LNG facility.

Shell and Mitsubishi consortium is expected to be the internal rate of return on the project 15 percent on an initial investment of $ 6.98 billion, while the South Gas Company plans to pump $ 3.7 billion of public money in the beginning and the financing of investment from the sales of the remaining gas.

The project has faced legal obstacles and political opposition since the initial agreement reached in 2008.

Iraq and lose billion cubic feet of gas per day and burning mostly in the south. And intends to use the gas production is a joint venture with Shell in the local market to meet the growing demand for electricity has issued surplus.


http://bit.ly/tr84mw


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Iraq's Basrah provincial council in legal challenge to Shell gas deal
Basrah, Iraq (Platts)--24Nov2011/634 am EST/1134 GMT

The provincial council of Basrah in southern Iraq has decided to mount a legal challenge against a multi-billion gas deal between the central government and Shell, saying the project does not guarantee enough benefits for the province, officials said Thursday.

The Basrah Gas Company, a joint venture between Shell, Japan's Mitsubishi and the state-run South Gas Company, will be formalized on Sunday, when a final agreement is signed at the Oil Ministry in Baghdad.

"This lawsuit claim is a constitutional right because of the risks to Basrah," said council member Farid Khalid, who is also head of the energy committee. "We ought to get some concessions from the two companies such as health services and social development projects and others."
Local officials have argued that they have not been included in key talks about the project, which will gather and utilize natural gas that is produced in association with southern oil fields and is otherwise flared.

The Iraqi constitution "makes the province a partner in charge of oil policy," said deputy provincial council chairman Ahmed Sulaiti.

The project, which Iraqi officials say carries a $17 billion price tag, will process 2 Bcf/d of associated gas produced from southern oil fields and supply the domestic market. Any surplus gas will be exported in the form of LNG.

The South Gas Co. will have 51% in the consortium, Shell 44% and Mitsubishi 5%.

The newly formed company would be tasked with capturing associated gas currently flared at the Rumaila, Zubair and West Qurna 1 oil fields, currently totaling 700,000 Mcf/d but rising as incremental oil is produced from the fields being developed by consortia led by BP, ExxonMobil an Italy's Eni.

The legal challenge is the latest snag to hit the gas project since the heads of agreement was signed with Shell in September 2008 -- Mitsubishi joined the project later. Some Iraqi politicians have criticized the 25-year agreement because it was negotiated directly with Shell rather than by competitive tender.

In keeping with local investment concessions that foreign oil companies have made as part of their oil field development work, the provincial council wants guarantees of projects such as healthcare, said Farid Khalid, chairman of the Basrah council's energy committee.

"We had a number of proposals for both Shell and Mitsubishi regarding projects for the benefit of Basrah," he said.

It is not clear what the lawsuit will demand and where it will be filed. However, it is unlikely to prevent Sunday's signing.

The move by the Basrah council is the latest example of local councils demanding more authority from Baghdad. Salahaddin province last month voted to start the process to form their own region.

"I support the chairman of the provincial council in this endeavor," said Basrah governor Khalaf Abdul Samad, a member of Prime Minister Nuri al-Maliki's party.

"Raising a complaint against the Oil Ministry is a proper step," he said.

http://plts.co/irgs1124






BiggerThus - 24 Nov'11 - 18:45 - 131913 of 131939

You've gotta laugh. The signing of a 25 year contract to manage gas worth $17 billion that has been under negotiation for years is delayed because the Iraqi government couldn't get visas issued in time for the Shell BOD to attend the signing.
That is BEYOND farce - in fact it's almost criminally incompetent.
Were this to happen in any other country Mr Maliki, heads would roll. I think you know which head I'm referring to in particular, and it isn't your current Oil Minister.

He said the ministry spokesman Assem Jihad told the Kurdish news agency (Rn) that the South Gas Company signed Sunday a contract with a consortium of Shell and Mitsubishi Gas Company to establish a Basra.

Jihad said that technical obstacles concerning the entry of representatives of companies to Iraq and delayed visa (visa) led to the postponement of the conclusion of the contract to the next Sunday.


Lobo - 24 Nov'11 - 18:53 - 131914 of 131939

I've been out since 9.30 this morning and there are now 444 posts that I haven't read. Has anything significant come to our attention?

tia.

highlander7 - 24 Nov'11 - 18:54 - 131915 of 131939

They are incompetant because they are basically tribal leaders trying to manage a country and are very clearly not up to the job. However they had better learn pretty quickly , especially Mr S , or they will be looking at the an independant Kurdistan.

The Iraqi people are also sick and tired of no water , no electrical power and no jobs so the pressure is on. We need the O&G Law passed but so do they.

Lobo - 24 Nov'11 - 18:55 - 131916 of 131939

I see Spencer thinks the Shaikan birs are sold to Exxon, anything to back this up?

BiggerThus - 24 Nov'11 - 18:56 - 131917 of 131939

Lobo, just the alphatwats mentioning a 3 bid in the pipeline from Exxon for something or other related to GKP ... obviously not clear yet exactly what, or if they're just winding us up.

DFGO - 24 Nov'11 - 18:56 - 131918 of 131939

Analysis: Exxon Kurdistan foray tests Iraq's centralist resolve

By Patrick Markey

BAGHDAD | Thu Nov 24, 2011 12:10pm EST

BAGHDAD (Reuters) - Exxon Mobil's venture into Iraqi Kurdistan challenges Prime Minister Nuri al-Maliki's resolve against growing regional separatism and tests the investment strategy of the oil majors in Iraq.

Exxon is the first major oil company to test the waters by signing for six blocs with the Kurdistan Regional Government (KRG) in north Iraq, which is locked in a feud with the Arab-dominated central government over territory and oil rights.

Kurdistan has enjoyed more stability and security than the rest of Iraq, and its potential resources have already drawn smaller oil players like Norway's DNO and Gulf Keystone. But its festering political quarrel with Baghdad has kept majors away until now.

Exxon's foray into Kurdistan has forced a political stand-off between one of the world's largest oil companies and an Iraqi government determined to exercise sovereignty as U.S. troops withdraw eight years after the fall of former leader Saddam Hussein.

Deputy Prime Minister for Energy Hussain al-Shahristani, architect of many of Iraq's deals with foreign companies and a hard-liner against Kurdistan oil autonomy, said on Tuesday the government was considering sanctioning Exxon.

Baghdad had already warned that any deal foreign companies sign with Kurdistan would be deemed illegal, saying Exxon's move could jeopardize its huge contract for the 8.7 billion barrel West Qurna Phase One oilfield in southern Iraq.

But for Maliki, dealing with Exxon is a tricky balance: Taking a hard line could push more deals north and risk souring future investments in major southern fields as the OPEC country tries to rebuild its industry after years of conflict.

Ceding too much to Kurdistan may upset the balance with other regions chafing for more autonomy from Maliki's central government authority and test the frail power-sharing coalition in Baghdad made up of Sunni Muslim, Shi'ite and Kurdish blocks.

"We believe that the government will avoid cancelling the West Qurna agreement but will seek to penalize Exxon Mobil in some way," Eurasia Group's Crispin Hawes said.

"In the longer term, the Exxon Mobil move has put further pressure on the Maliki administration to deal with the question of regional authority and federalism."

At the heart of the Exxon dispute is the question of who controls vast oil reserves in the north of Iraq including territories disputed between Kurdistan and Baghdad -- a potential flashpoint for tensions as U.S. troops pull out.

Iraq sits on the world's third-largest oil reserves and with violence from its conflict now easing, it plans to auction 12 new oil and gas blocks in March that could add another 10 billion barrels to reserves.

Baghdad has already barred Hess Corp. from participating in a new bidding round for assets because of its dealings with Kurdistan.

But taking on a behemoth like Exxon -- well versed in legal tactics such as international arbitration to protect its interests -- would prove far more complex for Maliki and Shahristani.

Exxon is not only involved in West Qurna One, but is also leading a multi-billion-dollar water injection plan that is key to bolstering southern oilfield output -- a project that it may believe will help shield it from major punishment.

The U.S. company could have judged the political fallout was manageable enough to gain a foothold in Kurdistan.

"Exxon seems to have made the calculation that it is too important for Iraq's oil ministry to push them out of their southern projects," Teymur Huseynov, head of Global Energy Consulting at Exclusive Analysis, an intelligence company.

SIMMERING DISPUTE

For Kurdistan, the Exxon deal brings the region more international recognition as a player on the oil market and may seek to give it leverage with the central government over a long-awaited oil law to resolve the dispute.

While the feud means companies in Kurdistan cannot get full export revenue for now, the Kurdistan regional government (KRG) offers attractive production-sharing deals -- allowing companies to make profit from oil sales -- compared with the service contracts in the south.

Exxon itself has not commented on the deal. But already others are waiting on the sidelines, including Royal Dutch Shell, which one source said had planned to sign in Kurdistan

at the same time as Exxon but pulled out a day or two before.

Chevron and Italian explorer Eni had also be in contact with Kurdistan, one Iraqi official said.

"They know the geology is attractive in Kurdistan although geopolitical risk is high, but they know too how to balance that type of risk," said oil analyst Oswald Clint at Bernstein.

Iraqi Deputy Prime Minister Ross Nouri Shawis, a Kurd, said the central and regional governments had been in touch about the Exxon deal before. But any accord between Baghdad and Kurdistan appears to have soured at the last minute as Exxon signed.

Reflecting that fallout, the U.S. State Department said on Tuesday it had warned Exxon about the political and legal risks of signing contracts "without nationwide" approval.

Mixed messages from Baghdad reflect the power struggle within the government. Shahristani, a Shi'ite with strong ties to the south, is unlikely to want to retreat on Exxon. Shawis and others have offered a more conciliatory tone.

The outcome will not only affect Exxon and how other oil investors see Iraq, but also political relations between the two governments as they try to resolve their bitter dispute and sign the national oil law meant to define crude rights.

Agreement over the oil legislation -- seen as essential for investors to guarantee their assets -- has been stymied by competing claims to disputed territories along the internal border between Kurdistan and Iraq.

Some observers see in the Exxon move an attempt to force Baghdad and the KRG in Arbil to hammer out their differences rather than let worsening tensions damage investments. But a solution may be complicated if any of the six Exxon blocks falls inside disputed territorial areas.

Key legislation like Iraq's oil law -- initially agreed by the political parties in 2007 but still not passed -- has been caught up for years in Iraq as factions squabble for power.

Maliki may now find it politically difficult to accept Exxon's move into a semi-autonomous region as the government faces calls for autonomy from places like Salahuddin, where disgruntled Sunnis want more independence.

Autonomy would give a province more power over its finances, administration and laws. Local governments would have an upper hand in supervising public facilities in their territories, which could loosen Baghdad's grip on oil facilities.

"It's now become impossible to dissociate Exxon with Iraqi politics," Jaafar Altaie, managing director of Manar Energy consulting. "If the deal goes sour, critics could say Exxon helped ferment divisions in Iraq. If it goes well, they will say Exxon helped bridge the differences between Arbil and Baghdad

http://arabnews.com/economy/article535050.ece

300p a share for some of GKP's blocks.......... would be nice :)


http://www.thisismoney.co.uk/money/markets/article-2065874/MARKET-REPORT-Dealers-oil-rumour-wheels.html#ixzz1efHgCZfy

..........Revived talk of a bid from Exxon Mobil lifted Gulf Keystone Petroleum 21.75p to 168.5p. Speculation has intensified after Exxon recently announced it was to enter the semi-autonomous region of Kurdistan in which Gulf Keystone operates..........


http://www.ft.com/cms/s/0/1aa5a3ec-16c0-11e1-bc1d-00144feabdc0.html#ixzz1efLJCP8c

.............Fellow explorer Gulf Keystone Petroleum , which focuses on the Kurdistan region of Iraq, jumped 14.8 per cent to 168.38p amid gossip about a potential bid from ExxonMobil. Similar tales have been circulating ever since Exxon earlier this month became the first large oil group to sign a deal with Kurdistans semi-autonomous government.............


http://www.guardian.co.uk/business/marketforceslive/2011/nov/24/heritage-uganda-ruling-ftse-falls

..............Gulf Keystone Petroleum, which has operations in Kurdistan, jumped 21.75p to 168.5p with 12m shares traded on speculative talk of a possible 300p a share offer from Exxon Mobil, which is attempting to set up in the region. Traders were wary of the tale, however....................

indeed - yesterday was enjoyable - today 185+ ??

Prosel Good find on possible takeover? Cheers.

bid rumour in the daily mail and elsewhere this morning too :-))))

Appointment of Non-Executive Director


Gulf Keystone is pleased to announce the appointment of Mark Hanson as a Non-Executive Director effective immediately.

Mark Anthony Crump Hanson, 58, who is a qualified barrister and solicitor, was formerly Chief Executive Officer of Global Banking Corporation in Bahrain from 2006 to 2008.

Mark brings with him extensive regulatory and corporate governance experience having served as a director on several boards and having advised a number of clients in the Middle and Far East during his 34 year career. His experience includes the listing in Hong Kong and New York of Shanghai Petrochemical Company, the first mainland upstream Chinese oil company to list outside of the People's Republic of China, and oil and gas projects in Saudi Arabia.

Previous roles include Chief Executive of Bain Securities Limited, Managing Director of Peregrine Capital Limited, Deputy CEO at the Hong Kong Stock Exchange and COO of Crosby Financial Holdings. In addition, Mark was responsible for the establishment of ABN AMRO's investment banking and equity capital market operations in Saudi Arabia.

Commenting on today's appointment, Todd Kozel, Executive Chairman and Chief Executive Officer, said:

"As part of the implementation of our forward strategy, we are pleased to announce the appointment of Mark Hanson as a Non-Executive Director. Mark's significant experience in the areas of corporate governance, corporate finance and listing matters will undoubtedly contribute to the further strengthening of our Board which now includes four Non-Executive Directors. We look forward to working with Mark as we continue to explore, appraise and develop our world class acreage in the Kurdistan Region of Iraq."

There is no other information that is required to be disclosed with regards to the above mentioned appointment pursuant to Schedule 2 paragraph (g) of the AIM Rules, save as set out below:

And as the man said?

ork in progress proceeeds as normal and as JG stated last week -

"Even though we're running the business like we're gonna be there forever, we have to be prepared for the probability, or at least the very strong probability that we're gonna get bought".

Frankly, you lot are clutching at straws....perhaps a bid might come but there is that court case...and that needs to be cleared up first...

IF any company is to be taken out in the region, then GKP must surely be a favourite .... i note sp has slipped this morning which certainly lends credence to that bid rumour!

There is not just GKP...AFR look like a huge target...just can't count on it....

AFR is still primarily a west africa developer, but it's a very good company with all sorts of possibilities ahead for it

I'm having to wait with my positions....I'm praying that an upsurge is to come....

not today old bean - ftse now down 56