DNO Says PSAs in Iraqi Kurdistan are Valid

Once again there have been various quotes in the media which has caused speculation about the validity of DNO's Production Sharing Agreements (PSAs) signed with the Kurdistan Regional Government (KRG).

Iraqi oil minister Al-Shahristani have been quoted the following in Dow Jones Energy Services;

Quote: "The (oil) ministry isn't committed to oil investment contracts signed in the past...by officials from the Kurdistan Regional Government which were announced as contracts to develop oil fields," End Quote.

DNO has been in contact with Dr. Ashti Hawrami, the Minister for Natural Resources with the KRG who today advised DNO of the following:

The ministry in Baghdad has no authority to make statements like this, and the same ministry does not have to be committed to such contracts under the new constitution of Iraq.

Dr. Ashti Hawrami continued to say: There might have been misquotations, and for the avoidance of doubt KRG will make an official statement to clarify this issue in a few days

. Dr. Ashti Hawrami also referred to related questions and answers published on www.krg.org, August 22, 2006 under the title KRG Natural Resources Minister responds to comments on draft Kurdistan Petroleum Act.

In the Stock Exchange Notice released on January 11, 2006 DNO prepared two documents in order to clarify the position of DNO's agreements with KRG.

- A Note containing an extract of the clauses in the new Constitution of Iraq which are relevant for the PSAs.

- A Note with a list of questions and associated answers relating to issues that would further clarify the history and legal validity of the PSAs.


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