Joe Biden Goes To Baghdad To Hustle CONTRACTS FOR BIG OIL [View All]

Biden hustles terms on Iraq oil contracts

Published: Sept. 18, 2009 at 3:11 PM

BAGHDAD, Sept. 18 (UPI) -- U.S. Vice President Joe Biden's visit to Baghdad earlier this week -- his third this year -- came hot on the heels of a lightning visit by Russia's energy minister as the scramble for Iraq's oil riches heats up. Just as Sergei Shmatko sought favorable terms for Russian companies in an upcoming oil contract auction, Biden was hustling on behalf of the U.S. oil giants who have long dreamed of getting their hands on what may be the largest untapped oil reserves in the world.

Biden urged Prime Minister Nouri al-Maliki to resist the temptation to demand hefty payments from the international oil companies as the price for doing business with the new Iraq when a new auction of contracts is held in Baghdad in December.



There is speculation that this time around the oil companies will demand higher fees to compensate for the worsening security situation, a crisis that is likely to worsen as U.S. forces continue their withdrawal.



Biden stressed that the Iraqis must make their terms more attractive to foreign investors if they are to amass the $50 billion they say they need to upgrade their long-neglected energy industry and boost production to provide the revenue required for reconstruction.



Another major problem is the government's failure to produce an oil law that would regulate foreign participation in Iraq's oil industry.

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http://www.upi.com/Energy_Resources/2009/09/18/Biden-hustles-terms-on-Iraq-oil-contracts/UPI-15131253301096/