Wednesday, September 13, 2006
Iraq - Iran oil pipeline to be built
Commerce
Iraq and Iran plan to develop oil fields which straddle the border of the two countries. Iraqi Oil Minister Hussain al-Shahristani told Reuters in an interview that an agreement between Iraq and Iran will be signed in a few months after technicians mark out the common oilfields. Once the agreement is signed, an oil pipeline will be built which will carry Iraqi crude oil to Iran's southern refineries. The oil minister said Iran would pay the market price and that Iranian companies could build the pipeline in nine months.
Shahristani said Iraq would also forge similar deals involving oilfields straddling borders with Syria and Kuwait.
Iraq’s state oil marketer SOMO will hold talks with customers in November or December to discuss contracts for the first half of 2007 following the creation of a hydrocarbon law, which will set oil policy, and is likely to be passed by the end of the year. After the law passes the National Oil Company will be formed immediately. This should enable a new investment code which is what oil multinationals are waiting for before they start investing in Iraq.
Shahristani said Iraq would also forge similar deals involving oilfields straddling borders with Syria and Kuwait.
Iraq’s state oil marketer SOMO will hold talks with customers in November or December to discuss contracts for the first half of 2007 following the creation of a hydrocarbon law, which will set oil policy, and is likely to be passed by the end of the year. After the law passes the National Oil Company will be formed immediately. This should enable a new investment code which is what oil multinationals are waiting for before they start investing in Iraq.
