AP: Iraq Official Calls for Oil Partnerships (with Big Oil)

[Eugene]

Iraq Official Calls for Oil Partnerships

By JIM KRANE
The Associated Press
Monday, September 11, 2006; 7:20 AM

ABU DHABI, United Arab Emirates -- A top Iraqi official called for partnerships
with international companies to boost his country's oil industry on Sunday,
saying Iraq's emergence as a "secure petro-democracy" could quell rampant
sectarian violence.

Deputy Prime Minister Barham Saleh, a Kurd, conceded disputes between local
officials and the central government over who controls oil proceeds were one
of many obstacles to making improvements. But he said he was hopeful that oil
would be a "unifying force for Iraqis rather than a resource to fight over."

He spoke of Iraq emerging as a "secure petro-democracy" with the strength
to put an end to the violence that threatens to tear the country apart.

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Iraqi leaders are nearing agreement on a long-awaited hydrocarbon law that
could usher in huge investments by foreign companies in Iraq's oil sector
_ and eventually rescue the embattled country from deepening chaos, Saleh said.

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Foreign oil companies, with their huge investment clout and technology,
are best placed to quickly modernize Iraq's oil sector and meet the country's
goal of doubling the current crude production of 2.5 million barrels per day
by 2010, Saleh said.

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Full article: http://www.washingtonpost.com/wp-dyn/content/article/2006/09/11/AR2006091100206.html

Also: Iraq deputy PM warns of ‘regional catastrophe’ - AFP

[Kagemusha]

1. And which country would that be?

Iraq, or Kurdistan?

[dipsydoodle]

2. Exactly

it's called "gettin' in before the country is divided" Their constitution states that Iraq only receives royalties on all new wells. Guess who wrote that in for them .

[Kagemusha]

3. Isn't that the other way around?

Iraq only gets royalties on old wells and the regions owe nothing for anything new drilled?

Last time I heard was while the constitution was being negotiated so I admit I could be wrong...

[dipsydoodle]

4. I believe

that Iraq receives all revenue on existing wells but only royalties / barrel on new found deposits. I read that months back. If I can find a link I'll post it for you

[dipsydoodle]

5. Plough through this

http://www.globalpolicy.org/security/oil/2005/crudedesigns.htm#ripoff

[Kagemusha]

6. I did and it wasn't helpful in resolving this particular question.

Obviously the Kurds and Hakim want to get their cut before any deals like this are signed.