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MONDAY, NOVEMBER 23, 2009
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6

Big Oil Drooling Over Iraq Contracts

Firms booted out in '72 eye nation's vast untapped reserves

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(Newser) – Iraq is preparing to welcome back the foreign oil companies it ejected over 30 years ago, and the firms are giddy with anticipation, the Wall Street Journal reports. Contracts to revive production at neglected oil fields go up for auction next week, and competition is expected to be fierce. Oil firms believe Iraq's dozens of untapped fields represent the biggest opportunity in a decade, despite security and political risks.

The contracts up for grabs offer a fee for boosting production instead of a share of profits, which oil companies would prefer, but the firms are keen to get their foot in the door. Political squabbling has threatened to delay the plan. But Oil Minister Hussain al-Shahristani, who has developed a reputation as a by-the-book stickler for correct procedure, has the support of  Prime Minister Nouri al-Maliki, and insists the auction will proceed.

A refinery worker controls a valve on a pipeline at an oil refinery in Basra.
A refinery worker controls a valve on a pipeline at an oil refinery in Basra.   (AP Photo/Hadi Mizban)
People pass by the Rumailah refinery, north of Basra.
People pass by the Rumailah refinery, north of Basra.   (AP Photo/Nabil al-Jurani)
Iraqi police officers protecting oil installations patrol an oil pipeline of Rumailah refinery, north of Basra.
Iraqi police officers protecting oil installations patrol an oil pipeline of Rumailah refinery, north of Basra.   (AP Photo/Nabil al-Jurani)
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I'm not a political animal, and I don't enjoy politics. The only reason I've accepted and continue with my responsibility is to protect the Iraqi wealth from unclean hands.
- Iraq Oil Minister Hussain al-Shahristani

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6 comments
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Reader64481089
Jun 24, 09 5:25 AM CDT
What GW's war was truly about. "Iraq is preparing to welcome back the foreign oil companies it ejected over 30 years ago" Reply
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+9
IN RESPONSE:
wwwonderer
Jun 24, 09 9:45 AM CDT
They have been wanting to get back in so bad. Allegedly, one of the main reasons is that Iraqi oil is relatively close to the surface, making it cheaper to extract and refine. Ack. What will YOU be getting back. I doubt much after Exxon, BP, Royal Dutch, or whomever gets their record-setting profits mode back. It would be different if we would tax windfall profits AND cut energy subsidies. Don't hold your breath.
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+1
ack
Jun 24, 09 8:45 AM CDT
To be honest, I really can't complain too loudly if American companies get the oil. I mean, think about it. It's going into your tank regardless, so why not have more of the cash coming into this country instead of the oh-so-stable Middle East? Reply
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0
IN RESPONSE:
ack
Jun 24, 09 8:46 AM CDT
That's not to say I disagree with Reader above -- it sure was what Dubya's trillion-dollar war was about. But now that we've poured that money down the tube, I'd rather get at least *something* back.
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+1
IN RESPONSE:
zozo
Jun 24, 09 6:29 PM CDT
So you're saying that it's okay to bomb a country to pieces under false pretences, cripple them in process, then let American companies profit from the whole process because the Iraqi government is forced to get funds from somewhere to rebuild the country just destroyed by US corporates? I'm not sure you understand that COMPANIES will be profiting from all this, so unless you're a massive shareholder, you're not going to benefit from this. Unless you think "cheaper oil" justifies blatant deception from the past US administration and the unnecessary deaths of thousands of innocent lives (both American and Iraqi). In which case, you make me sick.
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