Exxon, Shell to develop major Iraqi field

[sabra]

Source: Chron/Bloomberg

Exxon Mobil Corp. and Royal Dutch Shell Plc will sign a contract with Iraq to develop the West Qurna-1 oilfield on Jan. 25, according to the country's Petroleum Contracts and Licensing Directorate.

Exxon has accepted Iraq's changes to the contract, which the country awarded last year, Sabah Abdul Kadhim, head of the directorate's legal department, told reporters today at Iraq's Oil Ministry.

The first phase of the West Qurna development was awarded to Exxon and Shell in November after the parties failed to agree on terms during Iraq's licensing round in June. West Qurna-1 holds about 8.7 billion barrels of oil in reserves, according to the U.S. Energy Information Administration.

Legal advisers to Prime Minister Nuri al-Maliki proposed changes to the West Qurna-1 agreement that would dilute compensation for the contracted companies if the projects were canceled, the Middle East Economic Survey reported earlier this month.

Read more: http://www.chron.com/disp/story.mpl/business/6821345.html

[PearliePoo2]

1. well...well...imagine that.

Exon and Shell and Iraq. Who woulda' thought!
(but it was never about the oil) :eyes:

[flyarm]

2. but it was never about oil..don'tcha know...eom

[liberal N proud]

3. Mission Accomplished?

The true purpose of the war fulfilled,

[madrchsod]

4. it was about saddam wanting to peg his oil to the euro and ....

who was going to get the contracts to rebuild the oil fields.

the infrastructure of the oil fields during the 90`s was out dated and falling apart. the first gulf war then the sanctions imposed by clinton crippled the oil exportation and development. it will cost billions to rebuild the oil industry in iraq.

millions have been injured and have died for the precious juice

[The Doctor.]

5. Putting the reserve currency status of the US Dollar at serious risk...

... with the real potential to cripple our economy and our borrowing power.

Of course, if we'd taken the same we spent on Iraq and invested in our own infrastructure and energy independence, the move would have been pointless for him as the US economy and dollar would be too strong to budge its status.

But we had a Military-Corporate-Complex to feed, so the more practical solution was never an option.