BP and Shell to sell Iraqi oil

Evening Standard (U.K.) ^ | 07/09/03

[Pokey78]

British oil giants BP and Shell are poised to start selling oil from Iraq after success in a tendering process.

The two groups are understood to be among four firms worldwide chosen to buy shipments of crude from Iraq's State Oil Marketing Organisation (SOMO) in the second such tendering process since the fall of Saddam Hussein.

The two firms, which were both unsuccessful in the previous round, confirmed today that they had each been awarded a cargo of two million barrels of crude in the process which was completed yesterday.

A Shell spokesman was unable to confirm whether the oil will find its way directly on to the UK filling station forecourt but BP said that its shipment, which is expected to be delivered in the middle of this month, is destined for the US market.

Although Shell did buy oil from the country as part of the UN oil-for-food programme before the recent US-led invasion, this was done through third parties rather than dealing directly with Iraq.

The news had little impact on oil prices which were up 27 cents today to 28.24 US dollars (£17) a barrel.

[kellynla]

After winning the war in Iraq and freeing the Iraqis, I think we should get free gas for a year. Now I will wake up from my dream. LOL. Question, Pokey. Will the price of gas fall with this deal?

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[Steven W.]

it will, eventually :)

[Libloather]

CNBC just reported that there are 120 BILLION barrels of known oil. More than 100 billion barrels may still be undiscovered. Saddam was stalled, because of sanctions, to get the latest and greatest gear in order to find the rest.

An Army Corp of Engineers dood also mentioned something about a TRILLION cubic feet of undiscovered natural gas.

If you got 'em, grill 'em...

[kellynla]

Something else that I don't understand. Afghanistan is supposed to have the largest natural gas deposits in the world. Why are these people living in poverty and raising poppy? Why aren't they drilling there???

[Libloather]

Why aren't they drilling there???

Ya got me on that one. I say drill in Alaska - but who listens to me?

[kellynla]

Well we might as well use the Middle East's oil first and then when they run out we can start drilling our own. :-)

[Libloather]

Well we might as well use the Middle East's oil first and then when they run out we can start drilling our own. :-)

I'm so good to go, I can't tell ya. When does the drilling begin?