Hussain al- Shahristani, oil minister of Iraq, warned that time was running out for big Western oil companies to seal even short-term deals. Joy.
Posted on 09/02/2008 1:12:02 PM PDT by BGHater
Iraq and China have agreed on the terms of a $3 billion oil service contract, the Iraqi oil minister said Wednesday, announcing his country's first major oil contract with a foreign company since the fall of Saddam Hussein.
The oil minister, Hussain al- Shahristani, warned that time was running out for big Western oil companies, which have pressed for years for Iraqi contracts, to seal even short-term deals that had been expected to mark their return to Iraq, which has the world's third-largest oil reserves after Saudi Arabia and Iran.
Iraq and the Chinese state-run oil company, CNPC, have agreed on the renegotiated terms of a deal signed in 1997 to pump oil from the Ahdab oil field, Shahristani said. CNPC is the biggest oil and gas company in Asia.
"Finally we have reached an agreement," Shahristani said. "The total investment of the project is expected to be about $3 billion."
Iraq has toughened the terms, changing the contract to a set-fee service from the production-sharing agreement signed under Saddam.
Iraq needs billions of dollars of investment in its energy sector after years of war and sanctions. With high oil prices and strong competition for access to some of the world's cheapest oil to produce, Iraq has been negotiating from a position of strength.
Under the revised contract, Ahdab will produce 110,000 barrels per day, up from the previous target of 90,000 barrels per day, Shahristani said. The first output would come in three years, and the field should pump for 20 years.
CNPC would own 75 percent of a joint venture to be set up for the contract and Northern Oil of Iraq would own 25 percent, Shahristani said. The value of the contract would be reviewed every quarter, he said.
(Excerpt) Read more at iht.com ...
Hussain al- Shahristani, oil minister of Iraq, warned that time was running out for big Western oil companies to seal even short-term deals. Joy.
Just so I understand this correctly, we spend millions of dollars freeing these scum from a sadistic homicidal tyrant, not to mention thousands of American lives, along with money and lives expended by our western Allies, protect them from a take-over by the Iranians, and help establish their miserable “Democracy” and these ingrates give a HUGH contract for their oil to......RED CHINA????????
Not perfect: but on the plus side Iraq is going to be producing cheap oil in three years.
Well it was an already prior deal, but it does bother me that China has not done anything over there and they are getting some deals.
Not to mention some very nice deals in Afghanistan.
isn´t politics fun?
“these ingrates give a HUGH contract for their oil to......RED CHINA????????”
Well, to be fair, any contracts the US would have gotten would just have gone to “big oil” and since we can’t have that, we simply have to rejoice in the fact that Iraq is free to do as they wish to do, and working with the US is something they do not wish to do.
Oh, my!!!!!
I see a + here.
China has an oil contract with Iraq. maybe they will help us more with Iran ?
is it wishful thinking ?
Everyone in the US State Dept. is happy!
China's rearmament and human right abuses greatly concern me. However, the EUroweenies won't do anything about Russia & Iran. The key foreign policy challenge for the next POTUS is make sure that China and Russia do not ally. China's recent reluctance to back Putin's claims to Ossetia / Abkhazia is a step in the right direction. China also appears to be wary of the Atomic Ayatollahs' ambitions.
In summary, better for China to get Iraqi oil contracts than for Russia. The latter would be a disaster.
Yes. They have even larger contracts with Iran. That is one of my beliefs why the US hasn’t hit Iran.
Iraq’s oil is, unfortunatly, a double-edged sword right now. If America makes deals to get it, the “We only went to Iraq for oil” crowd will have a field day. However, we’d be foolish to not try and make a deal with them, as it could potentially lead to some of the lowest prices in decades.
“Just so I understand this correctly, we spend millions of dollars freeing these scum from a sadistic homicidal tyrant, not to mention thousands of American lives, along with money and lives expended by our western Allies, protect them from a take-over by the Iranians, and help establish their miserable “Democracy” and these ingrates give a HUGH contract for their oil to......RED CHINA????????
“
Yup!
iI’m not I’m sure I agree with your sanguine view of the Communist Red Chinese.
The BEST scenario would have been for western opil companies to get the contract.
I am very disappointed in this administration on so many points its hard to keep them all straight. This is just the most recent.
I hope Bush & company stay as far away from the Republican Convention as possible. They can only hurt us.
Besides, now the Chinese have an interest in a stable Iraq. Seems they know something that the MSM does not.
With all the western oil companies out there, I find it hard to believe there isn't ONE willing and able to work out a deal with these people.
What you are saying about reducing the price of oil worldwide is correct - for now. But long term this presents a strategic problem for the U.S if the Red Chinese become established in any way in Iraq.
I strongly resent the actions of this ingrate government and the mindset of an Administration which permitted this to occur.
Not sanguine, just realistic. Russia is a greater threat to U.S., due to their history and their proximity to Europe. I don't see a Chinese Hitler (yet). Russia has one right now.
Notice: TOTAL SILENCE from the very noisy “no blood for oil” crowd.
Oil is fungible. What counts is that it gets extracted. Even if it goes to a captive customer, it still displaces what that customer would be buying on the open market.
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