While the US Govt vehemently denied that they werent after Iraqi Oil but were looking for WMDs (Weapons of Mass Destruction), and while the yankee hotshots bombed Baghdad, the only building left standing amidst the rubble was that of the Ministry of Oil. Surprising? Not at all, when Iraq has the second largest proven oil reserves in the world.1
Yesterday, the Iraqi Govt. cancelled the no-bids oil contracts awarded this June to Exxon Mobil, Chevron, Shell, Total, BP and others. Amazingly, the contracts were awarded without any bidding, to the very companies which were thrown out by the Saddam Govt when he nationalized the oil companies three decades. The contracts were supposedly awarded so that the fields could be modernized to kickstart production to pre-war levels.
The Chinese have in the meantime signed the first post-Saddam agreement for oil exploration in Iraq. Mr. Murli Deora and ONGC, please take note.
Shams Square Ripple
10 months ago