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Econwatch
June 24, 2009 1:55 PM

Big Oil Back To Iraq?

By
Anna Aulova
Topics
Oil
(CBS/iStockphoto)
Thirty five companies are qualified to bid on foreign oil contracts with Iraq starting next week, the Wall Street Journal reports. The government decided to auction off foreign oil contracts in an attempt to boost up its war torn economy.

The auction is taking place for the first time since Iraq nationalized its oil industry more than 30 years ago. Among top potential bidders are Exxon Mobil Corp., Royal Dutch Shell PLC, Italy's Eni SpA, Russia's Lukoil and China Petroleum & Chemical Corp. If all goes according to plan, the new contracts with foreign companies will help Iraq to stabilize six developed fields which have suffered because of the war.

Oil Minister Hussain al-Shahristani has expressed his commitment to staying on the deal despite lawmakers' concerns of legality of the contracts - believed by the parliament to have highly favorable terms for the foreign companies.

According to Wall Street Journal, the oil deal could be key to stablizing Iraq's economy and to its proposed plans to boost oil output from the current 2.4 million barrels a day to 4 million. The companies themselves, are also reported as being eager to receive the contracts due to Iraq's relativly unexplored reservoirs, with some considering the nation as the most important opening of petrolium fields in years. Only about 20 out of the known 80 oil fields have been developed.

Al-Shahristani has stated that the companies with the lowest rates and highest potential profit for Iraq will receive the contracts, according to the article.

Approximately 120 companies were interested in bidding. The contracts will last 20 years and the winning companies will begin work in November.

Add a Comment
by sjc_1 June 27, 2009 11:23 PM EDT
No, we are actually sane people and not rabid wrong wing nuts. We look at all the facts and reach logical conclusions, if the evidence warrants a concluson. You wrong wing nuts just foam at the mouth and rant on and on.
Reply to this comment
by sjc_1 June 25, 2009 12:32 PM EDT
IMO, this is what took so long for the "awakening" to happen, it could have occurred years earlier, but there was no legitimate government to hand over the oil. Oh yes, it WAS and IS about oil.
Reply to this comment
by mattcat25 June 25, 2009 12:29 PM EDT
The Bush/Cheney Energy Policy has been a disaster for the United States, but a windfall of huge profits for EXXON OIL.
Reply to this comment
by reality42 June 24, 2009 10:55 PM EDT
Look what USA did to Iraq and now they weaken Iraqs hand after destroying there country and now stealing there oil.
I think the world should destroy USA then come in a buy up all there tresures.
The worlds not dumb and after what the USA did with there greed they will never hold the power that they once did as the world is starting to level the playing field
Reply to this comment
by mattcat25 June 24, 2009 2:31 PM EDT
The Bush (Richard Cheney) Presidential Administration coveted a long term 30 year Oil Production Partnership Privatization Act that would've turned over complete control of Oil Production to Private Multinational Corporations (EXXON and BPO) without any provisions for the Iraqi People.

This legislation failed the newly installed Iraqi Parliament instead the Iraqis opted to maintain control of their Oil and put production contracts out to bid.


This one fact that completely failed is evident that the President Cheney and Bush along with the Republican Party used US Tax $Dollars (Socialism) to have the Military invad and occupy Iraq to steal their OIL.

Iraq never needed the US, and still doesn't because ultimately they have the OIL.
Reply to this comment
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