Big Oil Poised To Do Business With Iraq

Royal Dutch Shell, Chevron, ExxonMobil And BP Could See Advantage Over Others In The Future

(AP)  Iraq is close to signing oil service deals with several major Western oil companies in an effort to boost its output capacity, the country's oil ministry said Thursday - the first major Iraqi contracts with big Western companies since the 2003 U.S.-led invasion.

The deals, once signed, are something of a stopgap measure to help Iraq begin to increase production until the country is able to approve a new national oil law - now held up by political squabbles among Sunnis, Shiites and Kurds.

But they also could mark the beginning of an important long-term toehold by big Western companies into Iraq's potentially lucrative oil industry, by giving the companies a bidding advantage over other companies in the future.

Iraq's oil ministry spokesman would not name the companies set to get the deals.

But last December, four major companies - Royal Dutch Shell PLC, BP PLC, ExxonMobil Corp. and Chevron Corp. - submitted technical and financial proposals for the five oil fields and received counterproposals from the Iraqi side.

The New York Times reported Thursday that Shell, BP and Exxon Mobil, plus Total, were the four major companies close to signing deals, along with Chevron and some smaller companies.

Ministry spokesman Assem Jihad told The Associated Press in a telephone interview that the names would be announced June 30, after the proposals are sent to the Iraqi Cabinet for final approval.

BP did not immediately return calls seeking comment, and officials at Paris-based Total SA refused Thursday to comment on the report or on any of the company's activities in Iraq. A London-based spokesman for Shell, Adam Newton, said negotiations were ongoing but he declined to release more details, saying they were confidential.

The other two companies could not immediately be reached.

In March, Iraq's Cabinet gave the nod to the Oil Ministry to sign the deals worth around $500 million each. Baghdad hopes to eventually add another 600,000 barrels per day of output to its current 2.5 million barrels per day.

Jihad, who would not discuss details of the contracts, said the deals will be for two years, renewable for a third. The Times reported that the deals were essentially made for the first two years on a no-bid basis.

In the third year, the contracts would be opened to competitive bidding - but the original holders would have an advantage in that bidding, through a clause that would allow them to match bids from competitors to retain the work, the Times reported. It cited the Iraq country manager for a major firm, who spoke on condition of anonymity.

Such a deal would give the original holders of the no-bid contracts an important competitive advantage precisely at the time when Iraq's oil industry would be most likely to take off. It also is occurring at a time when access to undeveloped oil fields is highly prized - as companies seek new sources of production in a tight and expensive oil market.

Oil prices were at about $136 per barrel in trading on Thursday.

The predecessors of the four "majors," as they are called, first had a presence in Iraq in 1920 when they were the original partners in Iraq's Petroleum Company. They lost their licenses when the oil industry was nationalized in 1972.

Iraq sits on an estimated 115 billion barrels and it also has an estimated 112 trillion cubic feet of natural gas reserves, according to the ministry.

Iraq's oil law, one of benchmarks set by U.S. administration to achieve progress toward national reconciliation, will regulate the work of foreign companies in the Iraqi oil sector. But it is stalled over who will have final authority to manage the country's oil and gas fields

Another ministry official, speaking on condition of anonymity because the information is sensitive, said Shell wants to develop the Missan and Kirkuk oil fields, while BP is interested in Rumaila, ExxonMobil in Zubair and Chevron in West Qurna stage 1.

The official added that the Australian BHP Billiton has joined talks through Shell, while French Total has joined through Chevron.

Anadarko, leading a consortium of Vitol Holding and the United Arab Emirates' Dome, has also joined these talks to develop Luhais oil field, he said.

[faith_in_w]

es they will have an advantage, its the American way! Jesus bless the holy oil companies.

[itgranny]

The american people have been so "had". The war in Iraq has been all about this. And lookie, lookie, just in time for gas prices to go down to $3.00 in October so we are so grateful to this administration our votes will go to McCain so we can continue for another 8 years in the same path as we''ve been down plus Iran will be ripe for the taking too! Common people, please wake up and see what they are doing to us!

[killtheliars]

I pray the Iraqis turn around and give all of the major oil contracts to companies other then those from the U.S. THat would be freakin funny, the perfect irony.

[Latrocinor]

Common people, please wake up and see what they are doing to us!

Posted by itgrammy
.. .. ..
What are they doing to us grannie?

[armydog2]

hey faith,give it up already you are a little bit not all there.4000 plus lives lost so big oil could get these deals,4000 and counting, not to mention the countless innocent iraqi''s who have died.

[itgranny]

What are they doing to us? Have you been to the grocery store lately? Have you filled up your car lately? How''s your vacation plans? Have they changed? How many businesses are going under due to this?

BUT!!! worst of all, We went to war to get to this point. Hundreds of billions of dollars. 4000+ lives. We''re told that we''re going to be over there for a long time... protecting what? oil interests of rich bast__d''s who have sold us down the crick.

What have you put into this effort bhoogren? My son''s one of the lucky ones, he only lost his hearing, some of the use of one hand and has PTSS because some kid over there driving a truckload of explosives tried blowing him up.

Get your head out of the sand and wake up this is for the oil companies.

I wish people would have a better understanding of why the price of gas is so high. It%u2019s all about the traders in Wall Street. Or let%u2019s say the uninformed people who have money to burn, they are sitting on their duffs, buying and selling "Oil Futures"....I have been saying this for the past 8 years. It%u2019s not about the greedy oil companies or the refineries, it%u2019s about buying and selling "futures".....if you were to do a little research on this, you will see what I am referring to. The economic trend in the oil business has to do with the direct buying and selling of stocks. There has been about a 2000 percent increase or more in the online "E-Trade"....the government needs to get involved, and remove the oil market from the public''s capability of getting their uninformed minds involved in this.

[itgranny]

The US military will be providing security for these guys. That''s why we''re over there. That''s why we''re not leaving.

[lib_crusher]

Western Oil companies are going to control the majority of ME oil! WOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOHHHHHHHHHHHHHHHHHHOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!

[brianp55]

mmm hmm...here we go. This is what is was all about. Watch, the Iraqi government will cut a deal with a Chinese oil company and boot us out.

[stevex47]

"Western Oil companies are going to control the majority of ME oil!"

Ya, they are going to glady give up their resources to us. LOL...

That''s some good kook aid your drinkin'' their sparky.

[antoniof123]

So now we see a war for oil, just like a Republican to split hairs and lie.

[feelfree4u]

RE: "Royal Dutch Shell, Chevron, ExxonMobil And BP"

It is time to move to seize and liquidate the assets of these companies, and use the proceeds as seed money for a reparations fund for the victims of their war profiteering operations, and their executives must be tried and sentenced as accomplices of the criminal global terror network of the Bush regime.

These oil pirates are among the worst of the worst, and they must be held accountable for their heinous crimes against the people of earth.

No "deal" made with the illegitimate stooges that were placed in power in Iraq, can ever be seen as valid.

[hoseobama]

"These oil pirates are among the worst of the worst, and they must be held accountable for their heinous crimes against the people of earth. - feelfree

I''ve long suspected you were from another planet.

[gkc99]

"The predecessors of the four "majors," as they are called, first had a presence in Iraq in 1920 when they were the original partners in Iraq''s Petroleum Company. They lost their licenses when the oil industry was nationalized in 1972."


And now they march right back in on Bushit''s broad shoulders, financed by the American taxpayer, so they can stick it to us on $5/gallon gas.

thanks, Bushits!

[lib_crusher]

And then we bomb their azzes! Hard!!!

[gkc99]

Retired Gen. Taguba: Bush Administration Committed "War Crimes"
June 19, 2008 11:12 AM / ABC News

Writing the forward to a Physicians for Human Rights study of 11 former detainees who were apparently tortured by US military personnel and later released, Army Maj. General Antonio Taguba (Ret.) writes that "there is no longer any doubt as to whether the current administration has committed war crimes. The only question that remains to be answered is whether those who ordered the use of torture will be held to account."

Taguba, who led the Army%u2019s official investigation into the Abu Ghraib scandal, says that the report from the doctors'' human rights group based in Cambridge, Mass., "tells the largely untold human story of what happened to detainees in our custody when the Commander-in-Chief and those under him authorized a systematic regime of torture. This story is not only written in words: It is scrawled for the rest of these individuals%u2019 lives on their bodies and minds. Our national honor is stained by the indignity and inhumane treatment these men received from their captors."

[gkc99]

U.S. Major General says Bushit is a torturer.

Pussyass "lib_crusher" is real brave with other people''s lives.

He''s a Republican.

[lib_crusher]

"Western Oil companies are going to control the majority of ME oil!"

Ya, they are going to glady give up their resources to us. LOL...

That''''s some good kook aid your drinkin'''' their sparky.

Posted by stevex47 at 02:43 PM : Jun 19, 2008


I guess you didn''t bother to read the story. Not surprising...

[Latrocinor]

No "deal" made with the illegitimate....

Posted by FeelFree4U
.. .. ..

LOL! And just how do you know if their parents were married or not?

[lib_crusher]

U.S. Major General says Bushit is a torturer.

Pussyass "lib_crusher" is real brave with other people''''s lives.

He''''s a Republican.

Posted by gkc99 at 02:57 PM : Jun 19, 2008


LOL! Thats might be degrading coming from anyone else besides a pussyass f*ggot lib.

[feelfree4u]

Re: "And then we bomb their azzes! Hard!!!"

Posted by lib_crusher

Shouldn''t these companies be at least given a trial first?

[lib_crusher]

Thankfully, we have a President like GW Bush to sort out these crisis situations. I credit him with the ingenuity to urge the west-co oil conglomerate to push over all other bidders...by 40%!

China''s been lending the US money for years...and they''re still a bunch of poor azzes! LOL! You fail libs!

[lib_crusher]

Shouldn''''t these companies be at least given a trial first?

Posted by FeelFree4U at 03:04 PM : Jun 19, 2008

Not if they''re Chinese, Russia, or Iranian. F*ck dat!

[blackwater66-2009]

Bring em on over, we will protect them while their getting their oil for your big SUVs and Trucks !! Perhaps the price will go down now ???

[blackwater66-2009]

Bring em on over, we will protect them while their getting their oil for your big SUVs and Trucks !! Perhaps the price will go down now ???

[rudy654-2009]

Posted by lib_crusher at 03:05 PM

Look everybody another dillusional ditto head.

[brianp55]

"These oil pirates are among the worst of the worst, and they must be held accountable for their heinous crimes against the people of earth."...FeelFree

If these companies give us gas for less than $4.00 a gallon, most Americans will want to nominate them for sainthood.

[lib_crusher]

Look everybody another dillusional ditto head.

Posted by rudy654 at 03:12 PM : Jun 19, 2008

I''m sorry to here that about you Rudy.

[ramos937]

The big questions are (1) how much of this money will go to improve Iraq? and (2) how much of this money will go to help with our costs and (3) what valid safeguards are in place to ensure that the funds go to where they are intended to go?

[rudy654-2009]

Remember folks, this is only a measure to enrich the oil companies. Certainly enough people have lost their lives for it. So anyway, remember that there has been no shortage of oil and the ONLY reason there has been high gas prices is that the oil companies themselves restricted their production when American cut down their consumption. The oil companies have been content with the high prices and they are not about to bring them down. At least not while they are presently allowed to do as they please. Remember the Enron executives and what they said.

[rudy654-2009]

Posted by lib_crusher at 03:14 PM

You heard something? Wow. And now you are sorry? Wow, wow.

[lib_crusher]

(1) how much of this money will go to improve Iraq?

Hopefully none.

(2) how much of this money will go to help with our costs

My guess is enough to get us to $2.98 per gallon.(the national crying point)

(3) what valid safeguards are in place to ensure that the funds go to where they are intended to go?

Hopefully none.

[lib_crusher]

You heard something? Wow. And now you are sorry? Wow, wow.

Posted by rudy654 at 03:17 PM : Jun 19, 2008

It''s dittohead medication hour for you Rudy. Sorry to hear about your ailment.

[rudy654-2009]

Posted by lib_crusher at 03:17 PM

Such in depth commenting.

[lib_crusher]

Posted by lib_crusher at 03:17 PM

Such in depth commenting.

Posted by rudy654 at 03:20 PM : Jun 19, 2008

LOL! Likewise....

[rudy654-2009]

Posted by lib_crusher at 03:19 PM

It is? Wow.

All the coments on here remind me of a bunch of high school girls yacking. High gas prices are to be blamed on Wall Street and the way they sell "futures".....someone please take some math courses.

[rudy654-2009]

Posted by lib_crusher at 03:20 PM

Why thank you, sweety!

[lib_crusher]

I love men.

Posted by rudy654 at 03:21 PM : Jun 19, 2008

Wow.

[lib_crusher]

All the coments on here remind me of a bunch of high school girls yacking. High gas prices are to be blamed on Wall Street and the way they sell "futures".....someone please take some math courses.

Posted by mitchoncbs at 03:22 PM : Jun 19, 2008


I agree, but low prices are the doing of W.

[rudy654-2009]

Posted by lib_crusher at 03:22 PM

You love men? Wow.

[rudy654-2009]

Posted by mudrose at 03:23 PM

Yep, Limbaugh style statistics. Hypocrite is right.

[rudy654-2009]

Don''t you folks just love how some people make big oil the unfortunate victim of all that profit? Poor oil companies! They only get 4 percent of any of the oil they sell, or so says Limbaugh and Hannity.

[lib_crusher]

I love men.

Posted by rudy654 at 03:21 PM : Jun 19, 2008

Nope. Wowowowowowowwoowowowowowowwowowowwowwowwowowwwowowowowwowowowwowwowowwoowowowowowowowowwowowwowowowowowowowowow.

lib_crusher, you must be high....what low prices. They started going up as soon as he took office...

[rudy654-2009]

We know who is responsible for the high gas prices. The Enron executives set the pattern of gouging and the rest have been following along fearing no consequences. The oil companies have deliberately restricted production, oil speculators have contracted for higher prices in their purchase of oil, and our government has allowed the gouging to continue unrestricted.

[feelfree4u]

Re: "If these companies give us gas for less than $4.00 a gallon, most Americans will want to nominate them for sainthood."

Posted by brianp55

This might delay a trip to the gallows for their executives in the short run, but ultimately they must face hard prison time for their heinous crimes and abuses, and their assets must be seized and liquidated to help pay some restitution for their war profiteering and other serious crimes.

[Latrocinor]

Shouldn''''t these companies be at least given a trial first?

Posted by FeelFree4U

.. .. ..

The Pres and VP haven''t.

[Latrocinor]

The Enron executives set the pattern of
Posted by rudy654
.. .. ..
Ahhhh, the rythm method strikes again.