Tuesday, April 10, 2007
Russian oil company enters into partnership with Ministry of Foreign Affairs
Oil, Business
(Iraq Directory) - LUK-Oil company, the largest oil producer in Russia, entered a partnership agreement with the Ministry of Foreign Affairs on Monday, and said that it depends on its support in preparing for the rehabilitation of a giant oil deal in Iraq. LUK-Oil and the ministry said in a statement that the agreement is the first of its kind in Russia, and it aims to support LUK-Oil projects abroad and defend the interests of the company through diplomatic means and facilitate meetings of the company abroad.
In its turn, LUK-Oil would consult with the ministry in energy-related issues. The Russian news agency Interfax reported that head of the company, Wajid Ali Kabeerov, said at the signing ceremony which foreign media journalists were prevented from from attending, "our company is entering new areas which do not enjoy political stability. We will need the support of the ministry in Iraq, particularly".
The head of the company said last month that his company is optimistic about the prospects for reviving a deal since the era of former Iraqi President Saddam Hussein to develop the giant Iraqi field of West Qurna after the government approved the new Iraqi oil law. The deal, worth four billion dollars, to develop the West Qurna field may face problems due to its cancellation by the government of Saddam just before his overthrown in 2003.
However, the new oil law still needs to be approved by the Iraqi Parliament, which aims to establish the general framework of the work of foreign companies that invest in Iraq after decades of sanctions in the era of Saddam and the years of violence since the invasion, led by the United States.
Labels: Ahdab oil field, LUKoil, Ministry of Foreign Affairs, Russia, Wajid Ali Kabeerov, West Qurna
