Iraq oil deal in the works?
It makes sense that Britain, Russia and the US will cut up the Iraq oil pie before they go in, but will China be the odd man out? China has very large oil and gas investments in Iraq? As China's economic might grows, so to will its presence be felt in foreign affairs. I can only assume that China is not with the US coalition, it will be against it.
Reuters
UPDATE - Iraq sends mixed signals on Russian oil deal
Tuesday December 17, 12:39 pm ET
(Recasts adding Ramadan quotes, previous OTTAWA)
BAGHDAD, Dec 17 (Reuters) - Iraq gave conflicting reasons on Tuesday for scrapping a giant deal with Russia's LUKOIL (LKOH.RTS), with one official citing contractual breaches and another accusing LUKOIL of political misbehaviour.
Deputy Prime Minister Tareq Aziz was quoted as saying Iraq cancelled the $3.7 billion deal because the Russian oil firm had asked the United States for assurances that its contract would be honoured if President Saddam Hussein was ousted.
"LUKOIL went to Washington to get assurances that their contract will be implemented after the removal of the Iraqi regime," he told Canada's National Post newspaper.
"This is outrageous of them because they signed a contract with us...Such conduct cannot be accepted," Aziz added.
But the official Iraqi News Agency (INA) quoted Vice President Taha Yassin Ramadan as saying LUKOIL had failed to fulfil its contractual obligations.
"Iraq's decision to scrap the deal with the Russian LUKOIL company is legal," INA quoted Ramadan as saying.
He said cancellation of the deal for Russia's top oil company to develop the huge West Qurna field would not hurt relations with Russia or future contracts with Russian firms.
"This decision will not affect the two countries' ties as the two sides are negotiating several deals in different domains," Ramadan said, without identifying them.
"Iraq always encourages and supports cooperation projects with Russia and gives Russian firms priority in its present and future deals in all fields," he added.
Anxious about its economic interests, Russia has strongly opposed any unilateral U.S. strike on Iraq, which Washington accuses of developing weapons of mass destruction.
Russian oil majors have worried they could lose the West Qurna deal to U.S. firms if Washington removed Saddam.
Russia, which has long defended Iraq's interests in the U.N. Security Council, pressed for changes before backing last month's resolution that threatens Baghdad with serious consequences if it fails to disarm under U.N. supervision.
The resolution is widely seen as a last chance for Saddam to avoid a U.S.-led invasion.
Iraq's Oil Minister Amir Muhammed Rasheed said on Sunday Baghdad's patience had worn thin with LUKOIL because it had done no work at West Qurna since it signed the deal in 1997.
LUKOIL had said it had been waiting for the lifting of sanctions imposed on Iraq after its 1990 invasion of Kuwait. |
