Jun 2008 - OPEC

three pieces of the integrated project, Langanger says the
company will be able to finish agreements with the NIOC.
“We’ve always said that we will only pursue this project
if we can take part in all three elements — upstream, midstream
and downstream,” says Langanger. This means
that the entire bundle of related activities has to be worked
out carefully. But Langanger seems confident that all the
pieces will come together harmoniously. “However, at the
moment, it would be too early to announce a concrete
date for a final agreement.”
Iraq
In Iraq, OMV is also involved in some very promising
exploratory drilling. Back in November 2007, the company
acquired two licences from the Kurdish Regional
Government (KRG) to perform exploratory work on two
blocks in Kurdistan, close to the capital of Erbil, in northern
Iraq. These are the Mala Omar and Shorish blocks.
The KRG has extended licences to OMV giving them until
November 2010 to complete their seismic testing and
exploratory drilling.
Langanger says OMV expects to start drilling the first
well sometime in 2009 and the second one in 2010. “We
believe these are highly attractive blocks, so the potential
is high,” says Langanger. “But the jury is still out.”
Additional studies still have to be carried out.
In an aside, Langanger points out that despite what
others may say, the biggest challenge of doing work in
Iraq today is simply that there is no federal oil law in place
yet. “It’s being discussed,” he says. “But the details have
not been finalized yet.”
While such legal challenges are often a feature of
some oil-producing countries, Langanger says the KRG
and local authorities in Iraq are more than willing to
establish formal, cooperative agreements with foreign
companies. Things look very promising in Iraq.
Above right: Gholamhossein Nozari (r), Minister of
Petroleum of the Islamic Republic of Iran, and Helmut
Langanger (l), Member of the OMV Executive Board
and Head of the E&P Division, signing an agreement
between Iran’s NIOC and OMV in April 2007 for
participation in the development of the South Pars gas
field and the construction of an LNG plant.
Right: Not all of OMV’s activities in Iran have to do
with oil. In January 2004, the company contributed
$40,000 to rebuild the so-called Austria School in
Bam, Iran, 80 per cent of which was destroyed by the
Iranian earthquake in December 2003.
OPEC bulletin 6/08
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