Thursday, December 22, 2005

Norway Oil Company Strikes Oil in Iraq

"OSLO, Norway (AP) - A small Norwegian oil company said Thursday it struck oil with its first well in a Kurdish area of Iraq in a project that angered some Iraqis.

The well was drilled under a deal between the Kurdish provincial government and oil company Det Norske Oljeselskap AS, usually called DNO, signed in 2004.

The start of the project angered many Sunni Muslims in Iraq, who called it a first step toward Kurdish areas seeking to secede from Iraq.

Less than a month after drilling of the first well started, DNO announced that it had struck oil at a well depth of about 1,150 feet and that drilling would continue to possible deeper reservoirs.

The company did not estimate the size of the find, because more testing was needed, but said the reservoir could be 2,600 feet thick.

Iraqi officials have said the field near Zakho, 250 miles northeast of Baghdad, could have about 100 million barrels of oil reserves.

Shares in DNO, which has a 40 percent stake in the field, soared more than 30 percent to 50.75 kroner ($7.46) per share on the Oslo stock exchange after the announcement."
Star Tribune


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