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Iraq Oil Auction A ‘Success,’ No US Deals

From a strangely jubilant Reuters:

Iraq oil deal auction a "success," sees huge output

By Simon Webb And Ahmed Rasheed – Sat Dec 12

BAGHDAD (Reuters) – Iraq, emerging from the shadow of war, expects to boost its oil output to rival the level of top producer Saudi Arabia after awarding some of its most attractive oilfields to global oil companies this week.

By the end on Saturday of a two-day bidding round for 10 oil contracts — the second auction since the 2003 U.S. invasion — Iraq had received pledges from oil firms to boost its output by 4.765 million barrels per day, almost double its current output.

If all deals from a first auction in June, the second this weekend and others being negotiated are added to national production, Iraq will have a capacity of 12 million barrels per day, overtaking Russia and challenging Saudi Arabia’s 12.5 million bpd, Oil Minister Hussain al-Shahristani said

Some 30 international oil companies braved the threat of violence and attacks to come to Iraq, putting aside security concerns just days after car bombs killed 112 people in Baghdad.

Oil majors from the United States appeared conspicuously uninterested in the fields on offer in the second round, confounding expectations that they might end up with the lion’s share of Iraq’s oil sector as a result of the U.S.-led war.

Security may still be an issue. The series of car bombs on Tuesday was the third major assault on government buildings in Baghdad in four months and a bloody reminder of the fragile security as Iraq heads into a general election in March.

Thousands of Iraqi soldiers and police were deployed in the streets of the capital to protect the auction and army helicopters buzzed overhead. Oil executives traveled around town in convoys of armored SUVs with armed guards.

Amid fierce competition, a group led by Russian energy giant Lukoil won a deal to develop the West Qurna Phase Two oilfield, which with 12.9 billion barrels of reserves is one of the world’s largest untapped "supergiant" fields.

Supergiants are fields of 5 billion barrels or more

The Russian company’s win of West Qurna is made sweeter by the fact it had lobbied unsuccessfully since the 2003 U.S. invasion to revive a Saddam Hussein-era contract for the field

Other winners were a group led by Russia’s Gazprom for a deal to develop the Badrah oilfield

Probably the only reason Reuters termed this auction a “success” is because the US did not profit at. After all, what is more reprehensible right now than dealing in oil?

But, since Russia profited the most, it’s great news and of course very just.

After all, look at all the blood and treasure they sacrificed to overthrow the brutal dictatorship of Saddam Hussein.

Oil majors from the United States appeared conspicuously uninterested in the fields on offer in the second round, confounding expectations that they might end up with the lion’s share of Iraq’s oil sector as a result of the U.S.-led war.

Gee, we wonder why.

Thankfully, Reuters explained that it was out of fear for their safety, unlike the representatives from 30 other oil companies.

But after all, those other countries can’t be accused of having spent their “blood for oil.”

This article was posted by Steve on Saturday, December 12th, 2009. Comments are currently closed.

3 Responses to “Iraq Oil Auction A ‘Success,’ No US Deals”

  1. Liberals Demise says:

    C’mon……where are the fanatic “blood for oil” assholes?
    I know your out there. I hear you trembling………is that ‘fear’ I smell?

  2. Rusty Shackleford says:

    Well, look at it this way, Barry is keeping his promise to “get us away from foreign oil”.

    He’s a bloody genius, innee?

  3. canary says:

    Am I the only, that watched & heard Obama during Democrats debate, that we should get free oil from Iraq for our aiding them? Maybe Gibbs told the dog down boy” on that one.


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