Reuters
Iraq seen abandoning most short-term oil contracts
08.17.08, 2:19 PM ET


Iraq - (Adds additional comments, details)
By Missy Ryan

BAGHDAD, Aug 17 (Reuters) - Iraq is likely to abandon plans to sign up to $3 billion in short-term oil contracts, a U.S. diplomat said, putting in doubt deals that would give foreign oil firms their first major foothold in the country for decades.

"It appears that on present form (the Iraqi government) probably won't proceed with most of these or all of them," Charles Ries, coordinator for Iraq's economic transition at the U.S. embassy, told reporters in Baghdad on Sunday.

"But I think that some of the companies are open to continued discussions even on relationship grounds, and some of the companies ... don't think it's worth their time."

Iraq has been negotiating six no-bid, short-term technical support contracts with international oil firms, worth about $500 million each, which are aimed at quickly boosting production by a combined 500,000 barrels a day.

Like most oil-rich countries in the region, Iraq nationalised its oil industry in the 1970s. War and political instability have so far prevented international oil companies from returning since the fall of Saddam Hussein in 2003.

The government of Prime Minister Nuri al-Maliki is hoping to sign a host of new oil deals by next year that would provide global oil companies their first major commercial access to the OPEC member's fields in nearly four decades.

The first phase would have been the short-term deals, which should have been signed earlier this year but have been delayed in part due to disagreement over payment terms.

The deals involve Royal Dutch Shell (nyse: RDSA - news - people ) <RDSa.L>; Shell in partnership with BHP Billiton (nyse: BBL - news - people ) <BHP.AX>; BP (nyse: BP - news - people ) <BP.L>; Exxon Mobil (nyse: XOM - news - people ) <XOM.N>; Chevron (nyse: CVX - news - people ) <CVX.N> with Total <TOTF.PA>; and a consortium of smaller firms Anadarko <APC.N>, Vitol and Dome.

Ries said Anadarko and some of its partners had already walked away from talks over their deal, the first to apparently fall through.

He said the foreign firms were at best lukewarm to the idea of the short-term contracts which "were never going to be hugely lucrative," but some had been pursuing them in the hope of building a long-term relationship with Iraq's Oil Ministry.

The deals had also been criticised at home and abroad because they lacked competitive tenders, Ries said.

Oil Ministry officials, who have voiced frustration over the delays, were not immediately available for comment.

The short-term contracts were to be followed by far more valuable longer-term development contracts, for which dozens of foreign energy firms are expected to bid.

As the June 2009 deadline for finalizing those long-term contracts approaches, it has appeared more likely that the short-term bridge contracts could be discarded.

Iraqi officials have insisted they would not give preferential treatment in bids for long-term contracts to companies that participated in the short term deals.


Copyright 2008 Reuters, Click for Restriction

Remember when 'Big Oil' got these service contracts? How much of a hoopla the MSM had with it?

Read all 23 (oops 4) news articles>>>>>>

on google about them being cancelled by the Iraqis.

__________________

...that's what the lying loon left nut cases have been screaming about for years!!!

Bush's puppet Iraqi government, the war was all about oil, our US soldiers indiscriminately kill millions of innocent Iraqis all for oil.

What a pathetic bunch of America haters, I find them all as disgusting and evil as al qaeda.

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Cheney is the second executive officer to shoot someone in the face and chest. Clinton was the first.

You're blaming us because Bush is lousy at being a crook?

Seriously, Bushco's trillion dollar war has already stole more from the American public than they ever could have from Iraq, but if they have their way, they don't plan on leaving anytime soon.

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Obama/Biden 2008

You can't refute my claims of what the nut case left pounding mantra has been regarding this thread can you?

BTW, in case you haven't figured it out, war is expensive. Pretty amazing huh? Our stock market lost around a trillion after 9/11, and it recovered just as we will.

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Cheney is the second executive officer to shoot someone in the face and chest. Clinton was the first.

Well, isn't that just great. We're losing out on perhaps the only thing that makes this whole sad war worthwhile.

Iraq wrote in its constitution, with our guidance, that foreign oil firms would be allowed access to Iraqi oil fields for at least 30 years, now they are trying to reneg on that promise, the warlords want to throw it around as another victory?

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WARNING: In the unlikely event of an accidental agreement with any or all points made in the above post, contact a clinical psychologist immediately.

The views expressed in the above post are not necessarily those of Joker and/or any of his affiliates.

. "You have found the secret message. Do you have too much time on your hands? ...Let it go."

...this is Bush's puppet government, remember?

This is just more of goofy left mantra lying. Amazing how many nut cases believe that.

And one more thing, the loony left hate the oil companies, so why should they care.

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Cheney is the second executive officer to shoot someone in the face and chest. Clinton was the first.

So even after the disastrously poor planning that went into the war, and the corruption and ineptitude the administration has displayed since, somehow they were expected to get this piece right, and their failure to do so is somehow a vindication of their motives?

Ok.....

Yeah, so?

Apparently, he broke the strings.

__________________
WARNING: In the unlikely event of an accidental agreement with any or all points made in the above post, contact a clinical psychologist immediately.

The views expressed in the above post are not necessarily those of Joker and/or any of his affiliates.

. "You have found the secret message. Do you have too much time on your hands? ...Let it go."

What a silly thing to say.

If the Iraqis felt like theyre never getting the keys to the car,they'd never simmer down.The key to ending this things is to make sure the Iraqis understand theres no US colony being set up there.Its become more clear to the Iraqis that this is the case,with small events just like this.

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Feel kind of stupid saying all those goofy lies don't cha?

__________________
Cheney is the second executive officer to shoot someone in the face and chest. Clinton was the first.