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
Saturday, March 24, 2007
Kurdistan to increase the presence of foreign oil companies
Oil, Kurdistan
(AINA) - Iraqi Kurdistan wants to drastically increase the presence of foreign oil companies operating in the region by the end of the year. "We are in discussions with a number of other companies," Kurdish energy minister Ashti Hawrami told the Financial Times.
"It is more likely that the contractors will come (to Kurdistan) to start with and set up a base to hopefully then invest in the rest of Iraq. "Under the terms of a draft oil law expected to go before the Iraqi parliament in the next two months, Iraq's oil industry will be overseen by a Federal Oil Council and an independent national oil firm.
Revenue will be concentrated in a federal account, and redistributed to provinces on the basis of their populations, which would give the Kurds around 18 to 20 percent of the national cake. This represents a concession from the Kurdistan Regional Government, which wanted to retain revenues from newly-developed fields on its territory, but in return they have won the right to oversee development.
"It is more likely that the contractors will come (to Kurdistan) to start with and set up a base to hopefully then invest in the rest of Iraq. "Under the terms of a draft oil law expected to go before the Iraqi parliament in the next two months, Iraq's oil industry will be overseen by a Federal Oil Council and an independent national oil firm.
Revenue will be concentrated in a federal account, and redistributed to provinces on the basis of their populations, which would give the Kurds around 18 to 20 percent of the national cake. This represents a concession from the Kurdistan Regional Government, which wanted to retain revenues from newly-developed fields on its territory, but in return they have won the right to oversee development.
Labels: Ahdab oil field, Ashti Hawrami, foreign oil companies, Kurdistan
Thursday, March 08, 2007
Chinese to negotiate resumption of $700 mn oil deal
Oil
(Brunei Times) A Chinese delegation has arrived in Iraq with a mission to resume a US$700 million oil deal signed during Saddam Hussein's time, state media reported. "It's true that Chinese officials will be in Baghdad to discuss the exploration of the Ahdab oil field," said an unnamed official with the Chinese Embassy to Iraq, according to the Shanghai-based Oriental Morning Post.
The official also said Iraqi President Jalal Talabani and other high-ranking officials would visit China, with the specific date yet to be decided. According to the Iraqi Oil Ministry, Oil Minister Hussein Al Shahristani met China's new ambassador Chen Xiaodong on Monday to discuss a planned visit by President Jalal Talabani and the oil minister to China this month. Iraq holds estimated oil reserves of up to 115 billion barrels, the third biggest in the world.
The official also said Iraqi President Jalal Talabani and other high-ranking officials would visit China, with the specific date yet to be decided. According to the Iraqi Oil Ministry, Oil Minister Hussein Al Shahristani met China's new ambassador Chen Xiaodong on Monday to discuss a planned visit by President Jalal Talabani and the oil minister to China this month. Iraq holds estimated oil reserves of up to 115 billion barrels, the third biggest in the world.
Labels: Ahdab oil field, China, Hussain al-Shahristani, Minister of Electricity, oil
