BIG OIL WATCHING IRAQ, WAITING

The kids sweat and bleed, the politicians debate and point fingers, the economy drains and the infrastructure crumbles, the Islamic fascists slaughter innocents, Maliki holds hands with Ahmadinejad and the big oil companies negotiate with the Iraqi government. Business as usual.

Int’l Oil Firms Ready, Wait To Enter Iraq

WHO
Chevron and Total, Lukoil and ConocoPhillips, Royal Dutch Shell and BHP Billiton of Australia, Shell and Mitsubishi, The China National Petroleum Corp.

click to enlarge

WHAT
With the Iraqi Parliament still leaving doubt as to whether they well reach agreement on laws governing the ownership and benefits of their oil resources, the world’s big oil companies are making preparations to participate in exploration and production.

WHEN
The Iraqi Parliament has shown little sign of agreement on oil laws and will return in September for further debate (or not). There is no indication of any way the international oil companies can participate, absent an Iraqi law.

WHERE
There are well-known untapped reserves in the north and south of Iraq, as well as much talk of undiscovered potential in the west-central regions.

The oil companies and the politicians think it is their oil, not hers.

WHY
- 115 barrels of proven reserves.
- Chevron and Total agreed to cooperate on bids.
- Lukoil, the Russian national company, is negotiating on agreements made during Saddam’s regin and ConocoPhillips, with has 20% of Lukoil, is participating.
- Royal Dutch Shell and BHP Billiton are studying the Missan region in southeast Iraq for oil potential while Shell and Mitsubishi are studying natural gas resources.
- The China National Petroleum Corp. has been reassured on agreements made with Saddam though it awaits confirmation by the Parliament’s laws.
- The law needs to decide on sharing of oil resource control between federal and regional offices and on the kind of participation from international oil companies.

QUOTES
UPI: “That law is stuck in negotiations between political factions.” (NewEnergyNews: What isn’t?)