Iraq to cancel three oil deals [w/China & Russia]

Financial Times ^ | May 25 2003 22:20 | By Charles Clover in Baghdad

[DeaconBenjamin]

Iraq's oil minister announced yesterday that three oil production contracts signed by the previous regime with Russian and Chinese companies would be either terminated or frozen, according to Reuters news agency.

The move seems likely to plunge Iraq into complex international litigation, just days after the United Nations voted to end sanctions against Iraq.

Thamir Ghadhban, US- appointed oil minister, said a contract with the Russian oil giant Lukoil had been terminated, while another contract with a Chinese company to develop al-Ahdab field had been frozen by "mutual agreement". The fate of the third contract was unclear.

French, Russian, and Chinese companies received the lion's share of the services and production contracts under the old regime, as their governments were the most supportive of Iraq on the United Nations Security Council.

Phillip J. Carroll, the former Shell executive chosen by the Pentagon to advise the oil ministry, said there was some doubt whether existing foreign contracts "gave the Iraqi people the full benefit of their oil wealth".

In an interview with the FT, Mr Carroll said there was scope for renegotiating some existing oil deals with foreign oil companies. "Each one of these contracts will have to be examined, in the first instance, in terms of their legal status and standing. Someone working for the ministry would have to say, 'Do we have an enforceable contract here between Iraq and some other entity or is this merely an incomplete process of negotiation?' " he said. "There were some, but relatively few, fully signed and operative contracts.

"Secondly, if the contract is deemed to be incomplete or flawed in some way, they have to then examine the commercial terms - if they are fair to both parties, and if it's something they want to go ahead with. Several of these contracts have cast doubt as being overly generous to one party."

While taking aim at Russian and Chinese companies, Mr Ghadhban said he was nevertheless in favour of opening up Iraq's oil industry to foreign investment: "We are going to open the door for foreign investment but in accordance with a formula that safeguards the interest of the Iraqi people."

Iraqi production was currently at 800,000 barrels a day of crude oil, he said. Exports could begin within the next few weeks.

Mr Carroll confirmed that the former regime had developed a strategic plan to increase production capacity fr om 3m b/d to 6m b/d in six to seven years at a cost of $25bn-$30bn. Such a scheme would eventually enable Iraq to challenge Saudi Arabia as the largest oil exporter in the world.

At that point, he said, Iraq would have to decide whether to continue membership in Opec, which puts a cap on production levels, and how to attract foreign investment.

Mr Carroll was careful to say that it was up to an Iraqi government to decide both these issues.

"It's not something I have any interest in, it is a decision of a sovereign government of Iraq."

[spokeshave]

Good start

[dixiechick2000]

"...a contract with the Russian oil giant Lukoil had been terminated."

ROTFLOL!

You know what they say about "paybacks"...

[Principled]

Mr Carroll confirmed that the former regime had developed a strategic plan to increase production capacity fr om 3m b/d to 6m b/d in six to seven years at a cost of $25bn-$30bn. Such a scheme would eventually enable Iraq to challenge Saudi Arabia as the largest oil exporter in the world.

At that point, he said, Iraq would have to decide whether to continue membership in Opec...

I wonder if Saudis are bitching about this free market approach the same way some Americans bitched about NAFTA.

[BenLurkin]

And talk about sore losers . . .the Russians are practising First Strike nuke attacks on U. S. and England.

Looks like SDI is still a good investment.

[DeaconBenjamin]

The B is back?

[sheik yerbouty]

Shi'ite happens!

[Bedford Forrest]

This is heartbreaking, heartbreaking I tell you. Among other things, the frogs and the krauts have been transformed into [very] junior creditors of the gestational Iraqi government, which means, among other things, that the frogs and the krauts are going to pay premium prices, bigtime, for any oil we permit them to purchase with their so-called receivables against Soddom's defunct regime. How sweet it is. Speaking charitably, I say give them 20 cents on the dollar. If they don't like that generous offer, give them nothing.

[Agricola]

Imagine you are not an American for a moment but a Russian, German, Frenchman, or Chinese. The USA pushes for war against an oil rich regime on the basis that it has WMD's for months. All during this time it deny's to high heavens that it has anything to do with this country sitting on the second biggest oil reserve in the world. Furthermore- this "threat" is not even the worst offender among it's immediate neighbors when it comes to WMD's nor is it even close to being a major sponser of terrorism in comparison to it's neighbors. But it is already conveniantly isolated and under UN Sanction with a nasty brutal dictator to boot. America then invades and after two months hasn't found any WMD's. Then America installs an Iraqi "oil minister" who terminates contracts with other countries. Nope- not about oil. I wonder who will get them? The title of this article should read "USA to cancel oil deals."

Those darn foreigners are just "left wing Bush haters" for daring to think America has less than pure motives.

[spokeshave]

And how many carrier attack groups does the USA have...12 I think....and the frogs, krauts, soviets and assorted wannabees...?

[ConservativeMan55]

Oh you don't know what you are talking about. France was the one that had oil at stake in this. NOT US YOU GOOFBALL!!

[McGavin999]

Yeah, the Iraqis were getting pennies on the dollar for their oil because Saddam just wanted money to buy his toys. Do you think for a minute these people didn't know they were screwing the Iraqi people royally? Of course they knew. Now they can renegotiate for a fair price so the people won't end up pumping out their birthright and getting nothing in return.

The money is going to the people. There is a trust set up for it, with the IMF and the UN overseeing it.

[jungleboy]

Yea, just picture you being a peasant worker in a Chinese state run sweat shop... getting the truth about anything.

[Beck_isright]

Pinging Mr. Putin....don't screw with Texas oilmen.

[ConservativeMan55]

Hey Guys check out some of Agricola's other idiotic posts!!!!!


http://www.freerepublic.com/focus/f-news/917555/posts?page=80#80

http://www.freerepublic.com/focus/f-news/917648/posts?page=8#8

http://www.freerepublic.com/focus/f-news/917648/posts?page=6#6

http://www.freerepublic.com/focus/f-news/917555/posts?page=55#55

http://www.freerepublic.com/focus/f-news/917431/posts?page=22#22

http://www.freerepublic.com/focus/f-news/917431/posts?page=14#14

http://www.freerepublic.com/focus/f-news/917231/posts?page=9#9

http://www.freerepublic.com/focus/f-news/917198/posts?page=7#7

[Beck_isright]

Me thinkst after checking those out, and reading them, that the Viking Kitties and the almight

ZOT!

are in order. Amazing that we still have sleeper cells here. Sigh.

[RightWhale]

There are attorneys in Iraq now. Little did we know. The second wave.

[scannell]

Tough S**t, the French, Germans, Russians only had these contracts because they were engaged in illegal trading with Iraq. This "malfeasance" and "misfeasance" is enough to declare them extortive and null & void.

You think we should do something to insure that the Weasels like us, they hate us anyway so who cares. It is like pacifing the DemocRATS and they always turn and bite the had that feeds them. We should now know that the HELL with feeding them or the Weasels.

[Beck_isright]

Pinging, the almighty....





ZOT that is.....back to DU you heathen, back....

[ConservativeMan55]

ZOT!!!!
Go back to DU you crazy nutjob! We don't need your kind here!