Thursday, August 28, 2008

$3 billion oil service contract signed with China

I find it odd that people like Raed Jarrar have adamantly opposed any production sharing agreements (PSAs), and yet Saddam's regime entered into a PSA with China, which both parties have agreed to amend (it is no longer a PSA) in order to make it fairer to Iraq.

Published: August 28, 2008

Iraq reaches oil agreement with China

"Iraq and China have agreed on the terms of a $3 billion oil service contract, the Iraqi oil minister said Wednesday, announcing his country's first major oil contract with a foreign company since the fall of Saddam Hussein.

The oil minister, Hussain al- Shahristani, warned that time was running out for big Western oil companies, which have pressed for years for Iraqi contracts, to seal even short-term deals that had been expected to mark their return to Iraq, which has the world's third-largest oil reserves after Saudi Arabia and Iran.

Iraq and the Chinese state-run oil company, CNPC, have agreed on the renegotiated terms of a deal signed in 1997 to pump oil from the Ahdab oil field, Shahristani said. CNPC is the biggest oil and gas company in Asia.

"Finally we have reached an agreement," Shahristani said. "The total investment of the project is expected to be about $3 billion."

Iraq has toughened the terms, changing the contract to a set-fee service from the production-sharing agreement signed under Saddam."

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