Big Western Oil Companies Set To Return To Iraq

Four Western oil companies are in the final stages of negotiations this month on contracts that will return them to Iraq, 36 years after losing their oil concession to nationalization as Saddam Hussein rose to power.

Exxon Mobil, Shell, Total and BP -- the original partners in the Iraq Petroleum Company -- along with Chevron and a number of smaller oil companies, are in talks with Iraq's Oil Ministry for no-bid contracts to service Iraq's largest fields, according to ministry officials, oil company officials and an American diplomat.

The deals, expected to be announced on June 30, will lay the foundation for the first commercial work for the major companies in Iraq since the American invasion, and open a new and potentially lucrative country for their operations.

The no-bid contracts are unusual for the industry, and the offers prevailed over others by more than 40 companies, including companies in Russia, China and India. The contracts, which would run for one to two years and are relatively small by industry standards, would nonetheless give the companies an advantage in bidding on future contracts in a country that many experts consider to be the best hope for a large-scale increase in oil production.

Read the whole story here.

Comments

[Vyvjala]

OILSRUS...........................what a nexium moment...................

[FightingTheRight]

Free markets get the oil!

Western oil companies get the profits!

American tax payers get the bill!


It's a WIN, WIN situation!

Just not for the Iraqi and American citizens!

[iratior]

You thought there was looting when Saddam Hussein was overthrown? That was nothing compared to how much Iraq is now going to be looted of its oil. Price: over 4000 servicepeople's lives and hundreds of billions of dollars. Wouldn't it be nice if you had a buisiness deemed so worthy of government largesse? Note that at the same time the big oil companies are grabbing all they can, Nouri al-Maliki is steadily accumulating dictatorial power; his political rivals are being systematically arrested in preparation for rigged elections. This is the real foundation of what pundits will come to extol as the "free markets" and "rule of law" in Iraq.

[RRonin]

Wonder what Bush and Cheney's oil stocks are worth now?

[cynicism101]

well, they would have got the same return as your 401k. And given that the government profits substantially more than oil companies do from the sale of each gallon of gasoline - well, I guess in general, we're all doing pretty well.

[ErnestineBass]

Was that satire, sarcasm or stupidity?

[thebanana]

Well, the war was fought so that these companies could make more money, so i guess it's only fair that they finally get the payoff.

[sharonh]

The Iraqi oil minister and the CEOs of all the oil groups, could borrow the MISSION ACCOMPLISHED banner and hang it high, with Mr. Bush front and center, of course.

[Mercedes]

When is the Main Stream Media going to start reporting this news? I just heard Keith Olbermann talking w/ Rachel Maddow about Bush's "Mission Accomplished" by getting Bush's OIL buddies these NO-BID contracts in Iraq. Supposedly, these contracts will only be for 2 years at the longest, but we ALL know that by the time 2 years is up the OIL companies will be "embedded" in the OIL reserves and won't want to leave or give up any pipeline to anyone else.

Once the American people find out about these contracts they will do one of two things:

1) They will ignore this and just go about their business and only care about themselves and filling their fat ass cars with cheap gas (or so they think)

2) They will WAKE UP and realize what Bush REALLY meant when he said "Mission Accomplished" and they will DEMAND Congress to do something about it--like Impeachment for Cheney, THEN Bush.

[sharonh]

Huffpost, why are pulling my posts again? Are you confusing me with sharonb?

[sharonh]

Every single penny of profit should be used to move the half-million or more Iraqis displaced back to their homes and give them the services they so desperately require. The oil belongs to the Iraqi people. This is a war for profit and is a crime against humanity.

[leduck]

yep
world crude oil production has been flat for the last four years
and people are just now figuring out iraq was about oil

peak oil


because of the huffpo

yep....

[sharonh]

Just means they are not pumping--not that the supply is low. Are you lobbying?

[browndog2]

I guess everyone here would be happier if Chavez or China got the gig. Not to mention these companies, along with their equipment and technonlogy, were pumping that oil even before there was a Saddam.

[myklwain]

there was never a chance for china, or any other country to secure oil contracts within iraq once we invaded.

[Oldbuck]

There is no doubt about why we went to war in Iraq. The sad thing is the price of a gallon of oil will not change a bit. Until we develop some alternative fuels we will never be free of the middle east. These companies are fools if they don't think in the blink of a eye the oil fields of Iraq will be nationalized and some one like China will take over the development of these fields. The Iranians will back door this operation and control that oil also.

[gladys46]

Absolutely further and continuous addiction to Arabian oil is just plain ignorant! Can't possibly be cost effective for american oil company's to do this as opposed to investing this capital into developing alternative methods as you say!

We are really asking for generational reliance upon foreign resources! China, Iran and others so addicted to foreign oil may well want to fight about who gets what and when!

This is capitalism at it worst ... gone amuck!

[mathme]

Whew! I was afraid that the oil companies and execs weren't going to get a fat paycheck from this!

[RegularFolk]

Isn't that what Oil Companies Do? Or would it be better if Microsoft does it.

[gladys46]

If Bin Laden is still alive I guess more sh%t may hit fans!! So, this is why we're paying through the butts ... I can imagine shinny, silvery attache cases fill with our hard-earned $$ passing through customs landing in the grips of those Iraqi oil ministers!

No-bid .... sure!

[EyeWantOneNation]

But...but....BUT....

Weren't we bringing freedom and democracy to poor Iraq ???

You mean Saddam nationalized the oil, and our American companies lost their access to the oil ???

Did we invade Iraq to get rid of Saddam and free up the oil ???

Lawdy, Lawdy....what next ??????