Western oil group eyes assets in Iraq

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http://www.msnbc.msn.com/id/20397920/

A large western oil company has offered $700m for oil assets in Iraqi Kurdistan owned by DNO, the small Norwegian oil company. The offer signals that international oil companies are willing to put significant amounts of money into Iraq in spite of the security problems and lack of a legal framework.

DNO refused to name the company, but industry executives speculated that Royal Dutch Shell was a possible bidder. Shell on Wednesday refused to comment.

DNO said it had received an "unsolicited expression of interest from a reputable financial adviser on behalf of a large international oil company", but had rejected the offer.

Helge Eide, DNO's chief executive, said in an interview with the Financial Times that the company would focus instead on maximising the value of its Iraqi assets. "There is more and more interest in Iraq, and we have a unique position there," Mr Eide said.