Filed under: Europe, Middle East | Tags: British Petroleum, Colonialism, Genocide, Imperialism, Iraq, Iraqi Oil, Iraqi Oil Fields, Racism, White Supremacy
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1 July 2009
Source: Global Research
Iraq’s government today approved a BP-led consortium’s offer to develop a giant oil field in the south, moving forward with the only deal struck during a much-hyped but ultimately disappointing international oil auction.
Iraq, which is desperate for cash to fund its reconstruction efforts, had put six oil and two gas fields on offer to foreign firms yesterday in the country’s first international oil licensing round in over three decades. But the auction — opposed from the start by many of the country’s lawmakers — failed to elicit the kind of excitement or commitments Iraqi oil officials had anticipated.
BP and its Chinese consortium partner CNPC walked away from the auction with development rights for the 17.8 billion barrel Rumaila field. But their win came only after they agreed to take less money for the oil they produced.
Under the service contracts, the companies are paid a per barrel price for production over a minimum target level. BP and CNPC had bid $3.99 per barrel, but slashed their price to the $2 per barrel payment sought by the oil ministry. Their only rivals for the fields, a consortium led by US giant Exxon Mobil, refused to amend its offer of $4.80 per barrel on target production of 3.1 million barrels per day.
The Cabinet of ministers signed off on the (more…)