Iraq to open deals for Big Oil
inmytree
Posts: 4,741
I thought Iraq's Oil would pay for this war and reconstruction, what's going on...?
http://money.cnn.com/2006/07/04/news/international/iraq_deals.reut/index.htm
Iraq to open deals for Big Oil
Oil minister says multinational firms will be invited to develop country's oilfields.
July 4 2006: 2:04 PM EDT
KUWAIT (Reuters) -- Iraq plans to invite international oil companies to help develop its giant oilfields before the end of this year, Oil Minister Hussain al-Shahristani told Reuters on Tuesday.
"These are major projects, giant oilfields," Shahristani said in an interview on his arrival in Kuwait.
Iraq, home to the world's third biggest oil reserves which are estimated at 115 billion barrels, needs up to $20 billion in foreign investment to boost production.
But multinationals have been waiting for a new investment law, expected to be approved later this year, and for security to improve.
Asked if oil majors are slated to take part in big oil projects in Iraq, Shahristani said: "Yes, definitely. It's going to be public tendering. We'll declare which oilfields will go first and then the oil company is free to apply."
The minister was asked when the tendering process would start. "Before the end of this year ... We have to decide on the types of contracts that we will be interested in."
Shahristani repeated that Iraq is now exporting up to 1.9 million barrels per day (bpd) of crude oil, its highest level since the war, after the army took over security of the vital northern pipeline to the port of Ceyhan in Turkey.
State marketer SOMO this month issued three sell tenders of Kirkuk crude after nearly a year-long halt due to repeated sabotage. SOMO aims to secure long term supply deals as it maintains the flow of Kirkuk.
"Iraq is currently producing about 2.5 million barrels a day and exporting 1.8 to 1.9 million barrels ... It will all be sold by contracts, long-term contracts," said Shahristani, who is visiting Kuwait as part of an Iraqi delegation headed by Prime Minister Nuri al-Maliki.
Term contract invitation
"The basic norm of selling Iraqi oil is long-term contracts from the north and the south," he added.
"We only started two or three spot sales from Ceyhan port because we had problems pumping through the pipeline and now that we have fixed it and we are pumping normally, we will be selling it in long-term contracts."
"We have already invited oil companies to declare their requirements; just before we left (Iraq) a couple of days ago," the minister said.
The sabotage-plagued northern line had been mostly idle since the invasion and Iraq had been relying almost solely on southern exports of Basra Light crude.
Decades of wars, sanctions and underinvestment have left Iraq struggling to boost oil production, which had been stuck since the 2003 U.S.-led invasion at some 2 million bpd, with exports of 1.5 million bpd. This compared with pre-war output of just under 3 million bpd and exports of around 2 million.
http://money.cnn.com/2006/07/04/news/international/iraq_deals.reut/index.htm
Iraq to open deals for Big Oil
Oil minister says multinational firms will be invited to develop country's oilfields.
July 4 2006: 2:04 PM EDT
KUWAIT (Reuters) -- Iraq plans to invite international oil companies to help develop its giant oilfields before the end of this year, Oil Minister Hussain al-Shahristani told Reuters on Tuesday.
"These are major projects, giant oilfields," Shahristani said in an interview on his arrival in Kuwait.
Iraq, home to the world's third biggest oil reserves which are estimated at 115 billion barrels, needs up to $20 billion in foreign investment to boost production.
But multinationals have been waiting for a new investment law, expected to be approved later this year, and for security to improve.
Asked if oil majors are slated to take part in big oil projects in Iraq, Shahristani said: "Yes, definitely. It's going to be public tendering. We'll declare which oilfields will go first and then the oil company is free to apply."
The minister was asked when the tendering process would start. "Before the end of this year ... We have to decide on the types of contracts that we will be interested in."
Shahristani repeated that Iraq is now exporting up to 1.9 million barrels per day (bpd) of crude oil, its highest level since the war, after the army took over security of the vital northern pipeline to the port of Ceyhan in Turkey.
State marketer SOMO this month issued three sell tenders of Kirkuk crude after nearly a year-long halt due to repeated sabotage. SOMO aims to secure long term supply deals as it maintains the flow of Kirkuk.
"Iraq is currently producing about 2.5 million barrels a day and exporting 1.8 to 1.9 million barrels ... It will all be sold by contracts, long-term contracts," said Shahristani, who is visiting Kuwait as part of an Iraqi delegation headed by Prime Minister Nuri al-Maliki.
Term contract invitation
"The basic norm of selling Iraqi oil is long-term contracts from the north and the south," he added.
"We only started two or three spot sales from Ceyhan port because we had problems pumping through the pipeline and now that we have fixed it and we are pumping normally, we will be selling it in long-term contracts."
"We have already invited oil companies to declare their requirements; just before we left (Iraq) a couple of days ago," the minister said.
The sabotage-plagued northern line had been mostly idle since the invasion and Iraq had been relying almost solely on southern exports of Basra Light crude.
Decades of wars, sanctions and underinvestment have left Iraq struggling to boost oil production, which had been stuck since the 2003 U.S.-led invasion at some 2 million bpd, with exports of 1.5 million bpd. This compared with pre-war output of just under 3 million bpd and exports of around 2 million.
Post edited by Unknown User on
0
Comments
Exactly. Iraq needs oil companies to come in and develope those fields. This would be a problem if the US would have automatically taken control of the fields and never relinquished the control.
This is what I would expect Iraq to do with the oil reserves. I wish it would have been used to pay for the war like Wolfowitz and every other Administration official was saying during the run up to the war. That would have been logical. Now U.S. taxpayers have paid over $200 billion dollars for a war that a majority of Americans feel was a mistake.
Park City, UT 06/21/98
Mountain View, CA 06/01/03
San Diego, CA 07/07/06
San Francisco, CA 07/15/06
So why did every official in the Administration say it was going to be used to fund the war? Oh yeah I forgot they misled us into the war.
Park City, UT 06/21/98
Mountain View, CA 06/01/03
San Diego, CA 07/07/06
San Francisco, CA 07/15/06
Ok. So are you saying that America should be getting a cut of all these contracts?
Sure. Why not? Other than many said we were going to war for oil so if we started taking some of the oil revenues it will look bad.
Park City, UT 06/21/98
Mountain View, CA 06/01/03
San Diego, CA 07/07/06
San Francisco, CA 07/15/06
That's a completely different point though. The fact that the administration made such a bullshit claim was the first indicator that they where lying. In order for the oil to pay for the war the US would have to gain control of the oil fields and maintain that control untill all the expences of the war where recouped from the sale of oil. That could take years and there was no way in hell any Iraqi government was going to let the US make all the money from their oil fields. It was a bullshit claim to help sell the war, but the point of the thread was a negative impression of the fact that Iraq was looking for foreign oil corporation to help develope their oil fields. there is nothing suspicious about that simply because that is how that industry works and that is the only way for Iraq to sell it's product.
I expected to be greeted as a liberator...for it to cost only 1 to 2 billion dollars...
and, oh yeah, for Iraqi Oil to pay for this war...I wonder if the profits yielded from Iraq oil will go back to the Iraqi's....
as for what should be done with the oil...I'm not sure, perhaps make gas or tires or bic lighters...but the profits should stay in Iraq to help re-build...is that so bad...?
I agree. I have no issues with what Iraq is doing. I hope they make an ass load of money.
Park City, UT 06/21/98
Mountain View, CA 06/01/03
San Diego, CA 07/07/06
San Francisco, CA 07/15/06
But how does this preclude that???
If US firms can acquire these contracts or subcontracts stemming from them, it stands to reason that they'd do so in order to profit. And since you tax profit, you'll recoup costs from those taxes.
More importantly, if the introduction of Iraqi oil increases the US gas supply, then gas prices will go down. This means purchases of gas will go up. If the increased purchasing leads to additional revenue, that will lead to additional tax dollars, leading to a recoup of costs.
There are a myriad of ways this event leads to recoup'ed costs. You seem to be simply expecting the Iraqi people to pay tribute to the US government, however.
Not that any of this justifies the war....but I fail to see how this is in any way an unexpected thing, anything counter to what the administration said, or anything negative whatsoever for the Iraqi or the America people.
You did???? Why in God's name did you expect this?
If Iraqis are doing to work, I certainly hope so.
It's bad if those profits are achieved without any actual work by the minds of Iraqis.
I agree I don't see this as unexpected. But to say this is going to have a major effect on the price of gas I disagree. The price of gas has gone up every year on average whether there is more supply or not. The problem is demand not supply. If you are a oil man then this may be good news to you but I don't see how any of this helps the average American. Have you seen this countries debt lately? Now a war $200 billion plus and counting......this is clearly a rich get richer scheme.
Park City, UT 06/21/98
Mountain View, CA 06/01/03
San Diego, CA 07/07/06
San Francisco, CA 07/15/06
are you serious...?
why? suddenly you're making rules on who should profit from something that is not even yours...
again..who are you to make the rules...? Based on this reasoning, Wal-Mart should be giving their profits to China...
since opec cut production in 99.
Very. Who convinced you that a war in an Arab nation would lead you to be embraced as liberators and that it would cost 1 or 2 billion dollars?
A hope is not a rule. I simply hope that the people who deliver the oil to the people who want it are the ones who should profit. If those who deliver the oil are Iraqis, hell yes they should get the profit. If not, I see no reason why they deserve to profit from it.
A judgment is not a rule.
Not really. Based on this reasoning, Wal-Mart should be giving a wage equal to the value of labor to the Chinese people who work for Wal-Mart. Sometimes they do, sometimes it borders on forced labor.
Elite America is getting a cut out of all these contracts. There is little distinction between corporations and government at this point.
No it hasn't:
http://zfacts.com/metaPage/lib/zFacts-Gasoline-Price.gif
http://www.randomuseless.info/gasprice/gasprice.png
That's certainly part of the problem, yes.
Do you understand why the price of gas has risen so much since the start of this war and why it will ease when this war is over?
Unfortunately, yes.
I'm not a war supporter in any way. This war wasn't worth $200 dollars, let alone $200 billion.
But "clearly a rich get richer scheme" would be better stated as "clearly a dumb getting dumber scheme".
And so will non-elite America if a single dime of it ends up being taxed.
Quite true.
I can't believe gas was that cheap!
Park City, UT 06/21/98
Mountain View, CA 06/01/03
San Diego, CA 07/07/06
San Francisco, CA 07/15/06
99, i remember putting 35 cents into the pump because i needed a half gallon to get to the hospital (stiches, nothing life threatening) and it was all i had in the car. and I remember a professor telling us to fill up our cars that night because gas was going to go up and never be that cheap again.
I haven't seen gas below $3.10 for about 9 months now. I had to sell my SUV for a car because of it.
Park City, UT 06/21/98
Mountain View, CA 06/01/03
San Diego, CA 07/07/06
San Francisco, CA 07/15/06