I dunno it if is "about the oil", but I do know that it's about the money. No, not for us, for them.
Hussein signed contracts with (gasp, say it aint so?) France, Germany, Russia, and China that will allow those countries exclusive rights to iraqi oil once the embargo against Iraq is lifted.
Oooooh I get it. So if Hussein is taken out of power those contracts are null and void. No wonder they don't support enforcing the UN resolution that they once voted for.
Of course, our hands aren't clean in this affair either as there are a few major UK and US oil corporations vying for similar access and courting various would be replacements for Hussein.
Dirty business this is, but I still think it needs to be done. The WMD and terror ties are too strong.
http://www.atimes.com/atimes/Middle_East/DK01Ak02.html
more..
As of October 2002, Iraq reportedly had signed several multi-billion dollar deals with foreign oil companies mainly from Russia, France and China.
Deutsche bank estimates US$38 billion total on new fields - 'greenfield' development - with potential production capacity of 4.7 million barrels per day if all the deals come to fruition.
The oil companies reportedly having signed deals with Iraq are none other than Lukoil and Tatneft from Russia, TotalFinaElf from France, China National Petroleum Corp from China, Eni from Italy, Repsol YPF from Spain and other oil companies from Indonesia, Malaysia and a few other countries.
Russia, being owed billions by Iraq for past arms deliveries, could have the strongest interest in Iraqi oil development, including a US$3.5 billion, 23-year-old deal to rehabilitate Iraqi oilfields, particularly the 11-15 billion barrel West Qurna field located west of Basra near the Rumaila field.
However, Iraq was reportedly becoming increasingly frustrated at the failure of these companies to actually begin work on the ground and has threatened to no longer sign deals unless firms agreed to do so without delay. It must also be noted that UN sanctions overwhelmingly have dissuaded these companies from doing so.
Russia's Lukoil signed an agreement with the Iraqi government in 1997 but requested to delay work on West Qurna. Lukoil was restrained from starting work by UN sanctions. When Moscow threw its support for a UN resolution on disarming Iraq, Iraq was furious and scrapped this oil deal. Lukoil's chief executive, Vagit Alekperov, then seeked guarantees from both Moscow and Washington that it would not lose the field to major US oil companies if the US ousted Saddam. News had it later that Lukoil received "guarantees" on this matter from Putin.
In October 2001, another Russian oil company, Slavnet, signed a US$52 million service contract with Iraq on the 2 billion barrel Suba-Luhais field in southern Iraq. Full development of Suba-Luhais could result in production of 100,000 barrel a day at a cost of US$300 million over three years. Last heard of in March 2002, Slavneft reportedly was awaiting approval from the UN to drill 25 wells at Luhais.
France's TotalFinaElf was reported to have signed a deal with Iraq on oil development rights for Majnun, located 30 miles north of Basra on the Iranian border. Majnun oil field is estimated to have oil reserves between 12 to 20 billion barrels. Production as at May 2002 was at 50,000 barrels a day, with output possibly reaching 100,000 barrels a day today. Majnun is considered as Iraq's largest oilfields.
In July 2001, Iraq was also angered by France's perceived support for the US "smart sanctions" plan and Iraq subsequently announced that it would no longer give French companies priority in awarding oil contracts, and would reconsider existing contracts as well.
Iraq also announced that it was inclined to favour Russia, which has been supporting Iraq at the UN Security Council, on awarding rights to Majnun and another large southern oil field, Nahr Umar. This oilfield is expected to have an output of around 440,000 barrels a day but may reach 500,000 barrels a day with more extensive development.
China National Petroleum Corp has a contract to develop the US$700 million Al-Ahdab field, reputedly the largest oil development deal signed in the country after West Qurna. A rapidly industralised China will also need all the oil it can secure for future requirements. Estimates in 1997 had it that China's oil import from the Persian Gulf would grow from 0.5 million barrels per day to 5.5 million barrels per day in 2020. This makes China one of the region's most important customers.
The final large oil field is Halfaya, located in southern Iraq, estimated to have reserves of 2.5 to 4.6 billion barrels. The reported companies showing interest in this Halfaya project are BHP, CNPC and Agip. Halfaya could ultimately yield 200,000 to 300,000 barrels a day in output at a possible cost of US$2 billion.
Smaller fields with under two billion in reserves are also receiving interest from foreign oil companies. These fields include Nasiriya (Eni, Repsol), Tuba (ONGC, Sonatrach, Pertamina), Ratawi (Shell, Petronas, CanOxy), Gharaf (Japex, TPAO), Amara (PetroVietnam), Noor (Syria), and more.
At least 110 prospects has also been identified from previous seismic work in the Western Desert blocs near the Jordanian and Saudi borders. In late 2000, India's onGC was awarded Block 8 and in april 2002, Indonesia's Pertamina signed an exploration contract for Block 3. Other companies reportedly interested in this Western Desert blocs include Petronas, Repsol, Lundin, Sonatrach, MOL, Ranger and TPAO.
In total, Deutsche Bank estimates that international oil companies in Iraq may have signed deals on new or old fields amounting to nearly to billion barrels of reserves, four million barrel a day of potential production, and investment potential of more than US$20 billion.
Thus, the major oil companies with deals in Iraq are French's TotalFinaElf (with estimated reserves of 12.5 to 27 billion barrels), Russia's Lukoil, Zarubezneft and Mashinoimport (with estimated reserves of 7.5 to 15 billion barrels) and China's National Petroleum Company (with estimated reserves of two billion).
Undoubtedly, Iraq's oil industry is in a "lamentable" condition. In 1990, Iraq was capable of pumping 3.5 million barrels of crude a day, down to 2.8 million barrels a day and falling annually by 100,000 barrels. Oil analysts and experts argue that Iraq would need several years and tens of billions of dollars to boost output capacity much above what it was on the eve of Operation Desert Storm.
Any future increase in production would thus depend on the extent of damage from the looming oil war, price of oil and the policies of Iraq's government. Thus, the issue is time.
The next question we should explore: How does the Iraqi government determine future and current oil deals?
A change in regime would undoubtedly pave the way to a change in policies. The incoming Iraqi government could face a giant legal compensation case after the oil war.
If the regime remains, with Saddam Hussein at the helm, the currently signed deals would be honoured. However, the impending oil war is expected to oust Saddam Hussein. It was reported last week that US has already chosen a successor to Saddam Hussein.
Mohamed al-Jabiri said that the White House has given its "blessing" to the head of the Iraqi National Congress, Ahmed Chalabi, to lead a transitional coalition government in Iraq once Saddam has been deposed.
So if there indeed will be a change in regime in Iraq, one can bet that there will be policy changes too. First and foremost, the change in regime, as per the oil factor, the incoming Iraqi government could face giant legal compensation case if the new government cancels all signed agreement under Saddam's regime.
Not to mention the fact that the military industrial complex of all three nations (China, France, Russia) are all heavilly involved in helping to maintain the Iraqi military. A disarmed Iraq is not in their best interest.
France, Russia, and China should know that one is judged by the company one keeps. I think I'll go order me some freedom fries.
Hussein signed contracts with (gasp, say it aint so?) France, Germany, Russia, and China that will allow those countries exclusive rights to iraqi oil once the embargo against Iraq is lifted.
Oooooh I get it. So if Hussein is taken out of power those contracts are null and void. No wonder they don't support enforcing the UN resolution that they once voted for.
Of course, our hands aren't clean in this affair either as there are a few major UK and US oil corporations vying for similar access and courting various would be replacements for Hussein.
Dirty business this is, but I still think it needs to be done. The WMD and terror ties are too strong.
http://www.atimes.com/atimes/Middle_East/DK01Ak02.html
more..
As of October 2002, Iraq reportedly had signed several multi-billion dollar deals with foreign oil companies mainly from Russia, France and China.
Deutsche bank estimates US$38 billion total on new fields - 'greenfield' development - with potential production capacity of 4.7 million barrels per day if all the deals come to fruition.
The oil companies reportedly having signed deals with Iraq are none other than Lukoil and Tatneft from Russia, TotalFinaElf from France, China National Petroleum Corp from China, Eni from Italy, Repsol YPF from Spain and other oil companies from Indonesia, Malaysia and a few other countries.
Russia, being owed billions by Iraq for past arms deliveries, could have the strongest interest in Iraqi oil development, including a US$3.5 billion, 23-year-old deal to rehabilitate Iraqi oilfields, particularly the 11-15 billion barrel West Qurna field located west of Basra near the Rumaila field.
However, Iraq was reportedly becoming increasingly frustrated at the failure of these companies to actually begin work on the ground and has threatened to no longer sign deals unless firms agreed to do so without delay. It must also be noted that UN sanctions overwhelmingly have dissuaded these companies from doing so.
Russia's Lukoil signed an agreement with the Iraqi government in 1997 but requested to delay work on West Qurna. Lukoil was restrained from starting work by UN sanctions. When Moscow threw its support for a UN resolution on disarming Iraq, Iraq was furious and scrapped this oil deal. Lukoil's chief executive, Vagit Alekperov, then seeked guarantees from both Moscow and Washington that it would not lose the field to major US oil companies if the US ousted Saddam. News had it later that Lukoil received "guarantees" on this matter from Putin.
In October 2001, another Russian oil company, Slavnet, signed a US$52 million service contract with Iraq on the 2 billion barrel Suba-Luhais field in southern Iraq. Full development of Suba-Luhais could result in production of 100,000 barrel a day at a cost of US$300 million over three years. Last heard of in March 2002, Slavneft reportedly was awaiting approval from the UN to drill 25 wells at Luhais.
France's TotalFinaElf was reported to have signed a deal with Iraq on oil development rights for Majnun, located 30 miles north of Basra on the Iranian border. Majnun oil field is estimated to have oil reserves between 12 to 20 billion barrels. Production as at May 2002 was at 50,000 barrels a day, with output possibly reaching 100,000 barrels a day today. Majnun is considered as Iraq's largest oilfields.
In July 2001, Iraq was also angered by France's perceived support for the US "smart sanctions" plan and Iraq subsequently announced that it would no longer give French companies priority in awarding oil contracts, and would reconsider existing contracts as well.
Iraq also announced that it was inclined to favour Russia, which has been supporting Iraq at the UN Security Council, on awarding rights to Majnun and another large southern oil field, Nahr Umar. This oilfield is expected to have an output of around 440,000 barrels a day but may reach 500,000 barrels a day with more extensive development.
China National Petroleum Corp has a contract to develop the US$700 million Al-Ahdab field, reputedly the largest oil development deal signed in the country after West Qurna. A rapidly industralised China will also need all the oil it can secure for future requirements. Estimates in 1997 had it that China's oil import from the Persian Gulf would grow from 0.5 million barrels per day to 5.5 million barrels per day in 2020. This makes China one of the region's most important customers.
The final large oil field is Halfaya, located in southern Iraq, estimated to have reserves of 2.5 to 4.6 billion barrels. The reported companies showing interest in this Halfaya project are BHP, CNPC and Agip. Halfaya could ultimately yield 200,000 to 300,000 barrels a day in output at a possible cost of US$2 billion.
Smaller fields with under two billion in reserves are also receiving interest from foreign oil companies. These fields include Nasiriya (Eni, Repsol), Tuba (ONGC, Sonatrach, Pertamina), Ratawi (Shell, Petronas, CanOxy), Gharaf (Japex, TPAO), Amara (PetroVietnam), Noor (Syria), and more.
At least 110 prospects has also been identified from previous seismic work in the Western Desert blocs near the Jordanian and Saudi borders. In late 2000, India's onGC was awarded Block 8 and in april 2002, Indonesia's Pertamina signed an exploration contract for Block 3. Other companies reportedly interested in this Western Desert blocs include Petronas, Repsol, Lundin, Sonatrach, MOL, Ranger and TPAO.
In total, Deutsche Bank estimates that international oil companies in Iraq may have signed deals on new or old fields amounting to nearly to billion barrels of reserves, four million barrel a day of potential production, and investment potential of more than US$20 billion.
Thus, the major oil companies with deals in Iraq are French's TotalFinaElf (with estimated reserves of 12.5 to 27 billion barrels), Russia's Lukoil, Zarubezneft and Mashinoimport (with estimated reserves of 7.5 to 15 billion barrels) and China's National Petroleum Company (with estimated reserves of two billion).
Undoubtedly, Iraq's oil industry is in a "lamentable" condition. In 1990, Iraq was capable of pumping 3.5 million barrels of crude a day, down to 2.8 million barrels a day and falling annually by 100,000 barrels. Oil analysts and experts argue that Iraq would need several years and tens of billions of dollars to boost output capacity much above what it was on the eve of Operation Desert Storm.
Any future increase in production would thus depend on the extent of damage from the looming oil war, price of oil and the policies of Iraq's government. Thus, the issue is time.
The next question we should explore: How does the Iraqi government determine future and current oil deals?
A change in regime would undoubtedly pave the way to a change in policies. The incoming Iraqi government could face a giant legal compensation case after the oil war.
If the regime remains, with Saddam Hussein at the helm, the currently signed deals would be honoured. However, the impending oil war is expected to oust Saddam Hussein. It was reported last week that US has already chosen a successor to Saddam Hussein.
Mohamed al-Jabiri said that the White House has given its "blessing" to the head of the Iraqi National Congress, Ahmed Chalabi, to lead a transitional coalition government in Iraq once Saddam has been deposed.
So if there indeed will be a change in regime in Iraq, one can bet that there will be policy changes too. First and foremost, the change in regime, as per the oil factor, the incoming Iraqi government could face giant legal compensation case if the new government cancels all signed agreement under Saddam's regime.
Not to mention the fact that the military industrial complex of all three nations (China, France, Russia) are all heavilly involved in helping to maintain the Iraqi military. A disarmed Iraq is not in their best interest.
France, Russia, and China should know that one is judged by the company one keeps. I think I'll go order me some freedom fries.
Of course "ours" are better than "theirs" though.
