Tuesday, July 01, 2008

Uh Oh......,

No special oil deal for the big'uns...,
Iraq is still negotiating with Shell, BP, ExxonMobil, Chevron and Total, and a consortium of other smaller oil companies, to develop six oil blocks and two gas fields, Oil Minister Hussein al-Shahristani told a press briefing.

"We did not finalise any agreement with them because they refused to offer consultancy based on fees as they wanted a share of the oil," he said.
Add that to no special 30 year leases, and this whole war for oil adventure has degenerated into an abject failure of epic proportions.

Amid concerns about foreign firms reaping huge financial rewards, Baghdad said the successful firms would have to have an Iraqi partner and give 25% of the value of contracts to locally owned firms.

The BBC's Nicholas Witchell in Baghdad said the move was highly significant since it paved the way for large foreign firms to re-enter a market they have been effectively barred from since Saddam Hussein nationalised Iraq's main oil company in 1972.

"It is not possible for Iraq, which has large oil reserves, to stay at the current level of production," said oil minister Hussain al-Shahristani.

"Iraq should be the second or third source of oil exportation."

Iraq's courting of foreign investment is at an early stage but has already attracted controversy due to claims that some contracts might be awarded without competitive bids.