Saturday, March 17, 2007
Oil minister says negotiations with foreign companies have not yet begun
Oil
(Iraq Directory) Iraqi Oil Minister, Hussein Shahrastani, said on Thursday that Iraq has not yet begun negotiations with the major international oil companies on the development of its energy sector; although, these companies are still waiting impatiently. Shahrastani said, "We are not negotiating with any major oil companies at the moment and we are awaiting the parliamentary approval to the new oil law which is likely to take place before the end of May".
The minister added that almost all international oil companies had interest in working in Iraq, "We have memorandums of understanding with almost each of these companies; they are preparing themselves, but there are no negotiations on the development of any particular field". The new law provides for the establishment of an Iraqi National Oil Company, which will be responsible for the main oil fields, the newly discovered and the productive. Major international oil companies are focusing on these fields such as West Qurna, Majnoon and Bin-Omar.
During the time of the late President Saddam Hussein, a consortium of Russian companies led by “LUKoil” signed an agreement to develop the West Qurna field, but Iraq canceled that agreement in 2002. Iraq is also reviewing an agreement to develop Al-Ahdab field signed with the Chinese National Petroleum Corporation and the Chinese company NORINCO for weapons manufacture. The French company Total, also, signed by initials some deals to develop the fields of Majnoon and Bin-Omar.
Labels: Bin-Omar, Hussain al-Shahrastani, Iraqi National Oil Company, LUKoil, Majnoon, NORINCO, Total, West Qurna
