Monday, June 25, 2007
Oil minister to honor oil contract signed with China during Saddam-era
Oil
(Al Alam News) - Iraq has revived a contract signed by the executed dictator Saddam Hussein's government allowing a Chinese oil company to develop an Iraqi oil field. Oil Minister Hussein al-Shahristani also said Baghdad welcomed Chinese oil company bids for any other contract in the country through a "fair and transparent bidding process" to be laid out in the new oil law under discussion in Iraq's parliament.
China National Petroleum Corporation, the country's largest oil company and the parent of listed group Petrochina, signed a deal with Iraq in 1997 to develop the al-Ahdab oil field. The field is one of the first to be offered to foreign investors since the 2003 US-led invasion. Iraq has been reluctant to revive Saddam-era contracts, but seems to have turned to China as security problems and uncertainties over Iraqi investment law have deterred other investors.
The field had an estimated pre-war capacity of 90,000 barrels a day and the 1997 contract was valued at about $1.2bn. "The contract with the previous administration is still valid--it was signed and we will honor it," al-Shahristani said. He said there were still some technical details to work out but that the two sides would begin discussing revised commercial terms and price details "within one month". It was too early to put a dollar value on the revised contract. US diplomats in Beijing said they were not aware that the deal had been revived.
The breakthrough on the contract was made during a weeklong visit to China by Jalal Talabani, Iraqi president, last month.
China National Petroleum Corporation, the country's largest oil company and the parent of listed group Petrochina, signed a deal with Iraq in 1997 to develop the al-Ahdab oil field. The field is one of the first to be offered to foreign investors since the 2003 US-led invasion. Iraq has been reluctant to revive Saddam-era contracts, but seems to have turned to China as security problems and uncertainties over Iraqi investment law have deterred other investors.
The field had an estimated pre-war capacity of 90,000 barrels a day and the 1997 contract was valued at about $1.2bn. "The contract with the previous administration is still valid--it was signed and we will honor it," al-Shahristani said. He said there were still some technical details to work out but that the two sides would begin discussing revised commercial terms and price details "within one month". It was too early to put a dollar value on the revised contract. US diplomats in Beijing said they were not aware that the deal had been revived.
The breakthrough on the contract was made during a weeklong visit to China by Jalal Talabani, Iraqi president, last month.
Labels: al-Ahdab oil field, China National Petroleum Corporation, Hussain al-Shahristani, Petrochina
