Iraq cabinet ratifies oil deals

Source: BBC

Iraq's cabinet has ratified a deal with two foreign energy companies to develop the giant southern oilfield in Rumaila. The contract with Britain's BP and CNPC of China is the first major deal with foreign firms to be signed since an international auction in June.

Thirty two companies - including Shell, Exxon, BP and Total - bid for contracts to develop six oil fields and two gas fields in June's televised auction, Iraq's first big oil tender since the invasion of 2003. But most of the bidders withdrew at the last moment, saying the terms on offer were unfavourable.

BP and CNPC agreed to run the Rumaila field - near the southern city of Basra - after US giant Exxon Mobil turned it down.

The maximum amount being offered by the ministry in the case of the Rumaila field was significantly less than the oil companies were asking for. Exxon Mobil declined to accept the maximum payment, but BP and CNPC, which had originally asked for $4 a barrel, agreed to do the work for $2 a barrel.

Read more: http://news.bbc.co.uk/2/hi/business/8312249.stm

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China and Great Britain thank Bush and his war for oil. Exxon Mobil probably expected some special "liberator" consideration.

working out for ya?

Fookin' idjit.

Looks like the U.S. and our Big Oil contingent lost out to democracy. Seems Iraq can and will make decisions on their own despite our intrusions.

Wow, so the oil wealth is actually going to benefit the people of Iraq and not big oil companies?