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Iraq Dumps Western Oil Deals

Plans scrubbed as talks drag on too long

By Rob Quinn,  Newser Staff

Posted Sep 11, 2008 3:04 AM CDT
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(Newser) – Iraq has scrubbed plans to award six coveted no-bid contracts to Western oil companies, the New York Times reports. Negotiations with the oil giants—including Exxon Mobil, Chevron, Shell, BP and others—dragged on for too long, said Iraq's foreign minister. The companies would have been unable to complete work to boost planned production by 500,000 barrels a day within the allotted year, he said.

The deals—relatively small, but prized as a foothold in a country with vast untapped reserves—were to be the first oil contracts awarded by Baghdad since the fall of Saddam Hussein. But Iraq  awarded a separate deal to China as talks with Western firms lagged. US lawmakers opposed to the deal welcomed the cancellation, arguing that forging a deal before Iraq finalized its oil laws would have exacerbated ethnic tensions.

People work at an installation at the Zubair Moshrif oil field, 372 miles southeast of Baghdad, Iraq.
People work at an installation at the Zubair Moshrif oil field, 372 miles southeast of Baghdad, Iraq.   (AP Photo)
An oil worker walks past oil loading booms at the al-Basra offshore terminal off the coast of southern Iraq.
An oil worker walks past oil loading booms at the al-Basra offshore terminal off the coast of southern Iraq.   (AP Photo)
A worker operates a valve on a pipeline at the Zubair Moshrif oil field, 372 miles southeast of Baghdad.
A worker operates a valve on a pipeline at the Zubair Moshrif oil field, 372 miles southeast of Baghdad.   (AP Photo)
Iraqi police officers protecting oil installations secure an oil pipeline of Rumailah refinery, north of Basra.
Iraqi police officers protecting oil installations secure an oil pipeline of Rumailah refinery, north of Basra.   (AP Photo)
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Iraq signs $3B oil deal with China
CNN

OPEC promises to keep pumping
AFP

Iraq oil causes rift between Arabs, Kurds
Times (UK)

Money • World

 
Iraq • oil • Iraq oil • Shell • Chevron • Hussain al Shahristani • oil companies • Exxon Mobil • China National Petroleum Corp.

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