Posted by Joshua on Thursday, June 19th, 2008
US Oil gets no-bid contracts in Iraq. I guess there have to be rewards?
Deals with Iraq are set to bring oil giants back
By Andrew E. Kramer
Thursday, June 19, 2008, Bloomberg
BAGHDAD: Four Western oil companies are in the final stages of negotiations this month on contracts that will return them to Iraq, 36 years after losing
their oil concession to nationalization as Saddam Hussein rose to power.
Exxon Mobil, Shell, Total and BP – the original partners in the Iraq Petroleum Company – along with Chevron and a number of smaller oil companies, are in talks with Iraq's Oil Ministry for no-bid contracts to service Iraq's largest fields, according to ministry officials, oil company officials and an American diplomat.
The deals, expected to be announced on June 30, will lay the foundation for the first commercial work for the major companies in Iraq since the American
invasion, and open a new and potentially lucrative country for their operations.
The no-bid contracts are unusual for the industry, and the offers prevailed over others by more than 40 companies, including companies in Russia, China
and India. The contracts, which would run for one to two years and are relatively small by industry standards, would nonetheless give the companies an advantage in bidding on future contracts in a country that many experts consider to be the best hope for a large-scale increase in oil production.
There was suspicion among many in the Arab world and among parts of the American public that the United States had gone to war in Iraq precisely to
secure the oil wealth these contracts seek to extract. The Bush administration has said that the war was necessary to combat terrorism. It is not clear what role the United States played in awarding the contracts; there are still American advisers to Iraq's Oil Ministry.
Sensitive to the appearance that they were profiting from the war and already under pressure because of record high oil prices, senior officials of two of
the companies, speaking only on the condition that they not be identified, said they were helping Iraq rebuild its decrepit oil industry.
For an industry being frozen out of new ventures in the world's dominant oil-producing countries, from Russia to Venezuela, Iraq offers a rare and prized opportunity. While enriched by $140 per barrel oil, the oil majors are also struggling to replace their reserves as ever more of the world's oil patch becomes off limits. Governments in countries like Bolivia and Venezuela are nationalizing their oil industries or seeking a larger share of the record profits for their national budgets. Russia and Kazakhstan have forced the major companies to renegotiate contracts.
The Iraqi government's stated goal in inviting back the major companies is to increase oil production by half a million barrels per day by attracting modern technology and expertise to oil fields now desperately short of both. The revenue would be used for reconstruction, although the Iraqi government has had trouble spending the oil revenues it now has, in part because of bureaucratic inefficiency.
For the American government, increasing output in Iraq, as elsewhere, serves the foreign policy goal of increasing oil production globally to alleviate the exceptionally tight supply that is a cause of soaring prices.
The Iraqi Oil Ministry, through a spokesman, said the no-bid contracts were a stop-gap measure to bring modern skills into the fields while the oil law was
pending in Parliament.
It said the companies had been chosen because they had been advising the ministry without charge for two years before being awarded the contracts, and because these companies had the needed technology. A Shell spokeswoman hinted at the kind of work the companies might be engaged in. "We can confirm that we have submitted a conceptual proposal to the Iraqi authorities to minimize current and future gas flaring in the south through gas gathering and utilization," said the spokeswoman, Marnie Funk. "The contents of the proposal are confidential."
While small, the deals hold great promise for the companies. ……
Interpol says Syria "very cooperative" in combating terrorism
Jun 18, 2008, (dpa)
Damascus – Interpol Secretary General Ronald Noble said Wednesday that Syria is 'very cooperative' in fighting terrorism.
'We do not accuse countries of being terrorists. We just ask countries to cooperate with us, and Syria is very cooperative,' Noble told a press conference on the sidelines of an anti-terrorism conference in Damascus.
The Interpol chief said that owing to the help of countries like Syria and Iran, they were able to add many details and pictures to around 8,900 wanted people.
The two-day conference, where 28 Middle Eastern and North African countries take part, aims at boosting international cooperation in anti-terrorism.