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BAGHDAD (Dow Jones)--Iraq Friday opened the second post-war bidding round for international oil companies to develop some of the country's prized oil and gas fields.
The licensing auction ceremony, opened by Iraq's Prime Minister Nouri al-Maliki, is offering 10 groups of oil and gas fields including the super-giants Majnoon and West Qurna-2, each holding more than 12 billion barrels.
However, some consortiums changed their minds and accepted the oil ministry's tough terms for contracts in the first bidding round and signed contracts. They are Exxon Mobil Corp (XOM) and Royal Dutch Shell PLC (RDSA) which signed for West Quran Phase 1 and Italy's ENI SpA (E) and U.S.' Occidental Petroleum Corp (OXY) which clinched a deal to develop Zubair, both in southern Iraq.
AMERICA’s elder statesman of finance, Alan Greenspan, has shaken the White House by declaring that the prime motive for the war in Iraq was oil.
Cheney's and Rumsfeld's script was never supposed to develop like this. Instead of US Big Oil getting the lion's share, strategic competitors Russia and China turned out to be big winners. Dick Cheney's "consolation prize" was an Exxon-Mobil-Shell alliance getting the phase 1 of West Qurna in early November. Exxon-Mobil had been the favorite to also win Rumaila (17.8 billion barrels of reserves). But a BP-CNPC (China National Petroleum Corporation) alliance got it in the end because unlike Exxon-Mobil they agreed to cut their fee per barrel down to the Oil Ministry-enforced $2.
An Exxon Mobil-led consortium has beaten rival Russian, French and Chinese groups to secure initial rights to develop Iraq's West Qurna field, adding momentum to Iraq's bid to unlock its oil riches.
With reserves of 8.7 billion barrels, West Qurna is among the prized Iraqi fields eyed by Western oil majors as they face flat or lower output at home and stiff competition from Chinese and Indian oil companies in bidding for oilfields elsewhere.
A total of 15 oil fields were put up for bidding, but five received no bids, because they are located in areas in the center and north of Iraq still contested by insurgents or politically unstable, and considered too risky for significant investment. A sixth field drew only one bid. The main interest was in oil fields in the southern part of the country, around Basra.
Originally posted by kiwifoot
What was the real purpose if not OIL? If it was OIL, what has gone so terribly wrong that in the end they end up with less than %10 of the oil?
Any ideas ATS?
[edit on 16-12-2009 by kiwifoot]
Originally posted by marg6043
Well that is not completely true,
Iraq oil development rights contracts awarded Shell wins Iraq majnoon oil field rights
The Cheney Energy Task Force released its final report in May 2001, arguing that Middle Eastern countries should be urged, "to open up areas of their energy sectors to foreign investment." This has now been achieved in Iraq. The sanctions are gone, foreign investment can proceed, and the problem of U.S. and British exclusion is over.
It has taken the full six years since Saddam Hussein ouster for the oil companies to finalize contracts. The delay was caused by their attempts to get the most lucrative deals possible in the face of stiff Iraqi opposition. Their chosen vehicle was the Iraq Oil Law, alternatively called Iraq Hydrocarbons Law, which would all but fully privatize Iraq's oil industry using Production Sharing Agreements (PSAs).
The Bush administration pushed aggressively for passage of the Law and in February 2007, it passed Iraq's cabinet (a body appointed under what is viewed as a process highly influenced by the Bush administration and which includes the Oil Ministry), only to be rejected by an Iraqi Parliament elected by a public vehemently opposed to the occupation. In October 2009, the Parliament announced that it would not even consider the Oil Law until after the January 2010 elections. It is quite likely that a new government, more hostile to the interests of foreign (particularly U.S. and British) oil companies, could come to power at this time. By November, the oil companies were at the table signing deals.
from your post.
t is quite likely that a new government, more hostile to the interests of foreign (particularly U.S. and British) oil companies, could come to power at this time
Originally posted by jtma508
If I was the evil PTB behind this whole scam I would NEVER allow any big oil company to win a major contract. It would draw way too much attention. What I would do is strike backroom deals to divert contracts to companies not easily tied to the US and then siphon-off oil through smaller subsidiaries. They don't want to make things too obvious you know. They know we're all watching them.
Originally posted by jtma508
Nah... it was almost certainly about oil. We know Cheney was in Afghanistan in 2000 trying to negotiate an oil easement with the Taliban. They rebuffed him.
I recently watched Michael Ruppert's movie, Collapse He gets into the whole peak oil issue (which some people don't buy) but goes into great detail about the wars and the economy. I tend to lean toward his reasoning.