wonder how / if this effects Heritage Oil that trades on the tsx?

US Secretary of State: Kurds have no authority over oil in their region
1/12/2007 KurdishMedia.com

London: U.S. Secretary of State Condoleezza Rice stated that Kurds do not have the right over oil in their areas, Reuters reported on Thursday.

On the issue of the ownership of oil Reuters stated, “Ethnic Kurds whose region includes the country's northern oil fields including the giant Kirkuk field have signed some contracts with foreign oil companies, spurring confusion over who has the authority to ink contracts.”

Rice said the oil law would not give the Kurds such authority.


see: Heritage Oil signs second agreement for Kurdistan, Iraq field studies
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CALGARY, Feb. 28 /CNW/ - Heritage Oil Corporation (TSX: HOC [ The Company's Common Shares trade on the Toronto Stock Exchange under the symbol HOC.] ) today announced that the Oil, Gas and Petrochemical Establishment (OGE) of the Government of the Autonomous Region of Kurdistan, Iraq has entered into a second exclusive Memorandum of Understanding (MOU) with K Petroleum Company (KPC) to undertake integrated reservoir field studies over several fields located south of the Erbil Mosul main road.

US Secretary of State: Kurds have no authority over oil in their region
1/12/2007 KurdishMedia.com

London: U.S. Secretary of State Condoleezza Rice stated that Kurds do not have the right over oil in their areas, Reuters reported on Thursday.

On the issue of the ownership of oil Reuters stated, “Ethnic Kurds whose region includes the country's northern oil fields including the giant Kirkuk field have signed some contracts with foreign oil companies, spurring confusion over who has the authority to ink contracts.”

Rice said the oil law would not give the Kurds such authority.

"Even though the Kurds might have been expected ... to insist that they will simply control all the resources themselves, that's not what the oil law does," Rice said.

Rice predicted what would be in the Iraqi oil law. She was not asked how she knew what is in the law that is not yet written.

The KRG insists that the Iraqi constitution gives the right of ownership of oil in Kurdistan Region to the Kurds. Rice dose not think so. This could end the Kurdish dream of owning their own oil.

What Rice stated is elaboration of what President Bush stated in his speech on Wednesday, relating to his “new” strategy in Iraq. Bush stated, “To give every Iraqi citizen a stake in the country's economy, Iraq will pass legislation to share oil revenues among all Iraqis.”

The implication is very serious. This means that any oil contract that is signed by the KRG is not valid.

It appears that the Kurdish honeymoon is over.

Rice was testifying before the Senate Foreign Relations Committee on U.S. President George W. Bush's plan to send more troops to Iraq. Rice tried to assure impatient U.S. lawmakers that Iraqi officials are making progress on the hydrocarbon law. /span>