No boon for US in Iraq oil deals

• Source: Global Times
• [01:18 December 14 2009]
• Comments

The second bidding round of Iraqi oil fields that ended over the weekend again runs counter to the predicted US domination, which seems to prove Baghdad's independence from foreign political interference, but remains a hot potato for most firms.

The Iraqi Oil Ministry on Saturday awarded seven of the oilfields offered for development, adding to deals from a first auction in June that could together take Iraq up to a capacity to pump 12 million barrels per day.

"For us in Iraq, it shows the government is fully free from outside influence. Neither Russia nor America could put pressure on anyone in Iraq – it is a pure commercial, transparent competition," said government spokesman Ali al-Dabbagh. "No one, even the United States, can steal the oil, whatever people think."

Russia's Lukoil on Saturday clinched a deal to develop Iraq's supergiant West Qurna Phase Two oilfield after having failed to convince Iraq to bypass the auction and revive an old Saddam Hussein-era deal for the field.

During a visit to Baghdad earlier this year, Lukoil executives had expected to announce the renewed Saddam deal. But after a few terse comments, they left empty-handed and visibly annoyed.

Only one US firm bid in the second round, and of the four fields bid on by US firms in the first round, only Exxon Mobil won a major prize, leading a group to clinch a deal for the supergiant West Qurna Phase One field.

US-based Occidental came away with a quarter stake in a consortium that won a contract for the giant Zubair field.

"We haven't really seen US companies, and that is because of intense competition ... The issue is financial and technical and not at all political. This confirms Iraq can manage its oil policy and activities without politicization," said Thamir Ghadhban, an Iraqi prime ministerial adviser.