Baghdad signs oil deal with 3-nation grouping: FT

[oldhat]

http://news.ft.com/cms/s/e86be4fe-5510-11d9-9974-00000e2511c8.html

Baghdad signs oil deal with 3-nation grouping
By John Reed in Baghdad

Iraq has awarded its first post-war oil contract to a Turkish-British-Iraqi consortium and plans to sign four more deals by early next year, a senior Iraqi oil official said on Thursday.

Under the $136m (€101m, £71m) deal, Avrasya, a Turkish engineering company, will lead a project to develop the Khurmala Dome, an extension of the Kirkuk oilfield in northern Iraq, Ahmed Al-Shamaa, undersecretary for oil, said.

Three bidders for the tender to develop Hemrin, another northern field, will be asked for final offers soon in a second deal.

Mr al-Shamaa said he received a recommendation on Thursday to proceed with the Khurmala contract from a cabinet oil and gas body formed in July to give Iraq's interim government tighter control over the country's biggest industry.

The Khurmala contract provides for the supply of surface equipment and material to develop the field; supervision of construction; and assistance during commissioning.

Avrasya and Kar, an Iraqi construction company, are joint-venture partners. Dynamic Processing Solutions, based the UK, will participate through an engineering contract, the company confirmed.

Mr al-Shamaa said Iraq's government had decided to re-establish contact with the three bidders for the Hemrin field, as the first two offers were close in price. "We are giving them a chance to give their last price," he said. "We have asked them to give us an answer by the end of the year."

He declined to name the bidders, but an industry source identified them as Canada's Ironhorse Oil & Gas, Nasdaq-listed Ivanhoe Energy and Irish- and London-listed Petrel Resources.

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[T Bone]

1. Conveniently right before the 'elections'

Just a coincidence, mind you.

[Demeter]

2. What "Government" I s This?

And how can they sign anything?

[Disturbed]

3. Maybe they are not an "Interim Govt.?

Will the al Sistani party with al Sadr and Achmed Chalabi win the Iraqi elections or Allawi and his group?

[oldhat]

7. It depends on who's assassinated first.

[heyphillip]

4. Oil deals in Iraq

I thought Iraq was to handle there own oil. this interm Government is not elected by anyone in that country and they are giving out oil contracts to others who don't even live in that country. and we still wonder why the Iraqis are so bitter and upset.

[Mr_Spock]

5. Iraqi's are bitter and upset?

I thought they threw flowers and kisses at us? Did I miss something?

[donheld]

6. Iraq will handle their own oil.

So long as they do what the US tells them to do.

[0007]

11. That's about the size of it!

....and mean while we're stealing what we can with both hands.

[Mike C]

9. Oil deals in Iraq

No, no matter who wins any elections or who rules the country, Iraq will need outside investment and knowledge to develop and expand their oil fields and related facilities. They simply don't have the capital required and are way behind technologically. My guess is they'll try so-called Technical Service Contracts rather than allowing companies to actually own a percentage of the oil. Mexico is doing that now. Or they could form companies with major international oil companies as minority partners - Shell's position in PDO (Oman) is an example.

[VegasWolf]

8. This election will be cancelled if the puppets look like they are losing.

[oly]

10. I see the first ones are not US outfits at least in name. I've been

wondering if owning the fields, mineral rights, everything -- is possible -- take Iraq government completely out of the picture after initial bargain basement, coerced, behind the scenes "deals" to get the fields totally in control of US and other western corporations. The crapola about the Iraqi people owning and obtaining real economic benefit from their oil is just that -- BS. Energy giants in the west and repug lackeys hate any kind of interference by the locals, none of that exappriation and nationalization, of course -- probably outlawed by the Iraqi constitution and enforced though treaties meant to scam the locals and pad the pockets of the few at the top who take their marching orders from the US. Of course, we in the US will benefit. We'll get our gas for a nickle a gallon (snicker), and the cost of the war in lives and treasure will be considered acceptable.