The Iraqi government is to award a series of key oil contracts to British and US companies later today.
June 30, 2008 BAGHDAD, Iraq (CNN) -- Iraq's oil minister Monday opened international bidding on six oil fields that could increase the country's oil production by 1.5 million barrels per day.
But the oil ministry continues to negotiate short-term no-bid contracts with several U.S. and European oil companies, including Exxon Mobil Corp., Royal Dutch Shell, Total SA, Chevron Corp., and BP -- a step recently criticized by two U.S. lawmakers.
Oil Minister Hussein Shahrastani announced Monday that 35 international oil companies can bid on long-term contracts for redeveloping the six oil fields, as well as two natural gas fields.
So the Guardian says they were to be awarded.
CNN says they are still being negotiated.
However it would seem that Hunt Oil has one signed - with Kurdistan.
NYT
By JAMES GLANZ and RICHARD A. OPPEL Jr.
Published: July 3, 2008
Bush administration officials knew that a Texas oil company with close ties to President Bush was planning to sign an oil deal with the regional Kurdistan government that ran counter to American policy and undercut Iraq’s central government, a Congressional committee has concluded.
United States policy is to warn companies that they incur risks in signing contracts until Iraq passes an oil law and to strengthen Iraq’s central government. The Kurdistan deal, by ceding responsibility for writing contracts directly to a regional government, infuriated Iraqi officials. But State Department officials did nothing to discourage the deal and in some cases appeared to welcome it, the documents show.
The company, Hunt Oil of Dallas, signed the deal with Kurdistan’s semiautonomous government last September. Its chief executive, Ray L. Hunt, a close political ally of President Bush, briefed an advisory board to Mr. Bush on his contacts with Kurdish officials before the deal was signed.
In an e-mail message released by the Congressional committee, a State Department official in Washington, briefed by a colleague about the impending deal with the Kurdistan Regional Government, wrote: “Many thanks for the heads up; getting an American company to sign a deal with the K.R.G. will make big news back here. Please keep us posted.”
The release of the documents comes as the administration is defending help that United States officials provided in drawing up a separate set of no-bid contracts, still pending, between Iraq’s Oil Ministry in Baghdad and five major Western oil companies to provide services at other Iraqi oil fields.
In the no-bid contracts, the administration said it had provided what it called purely technical help writing the contracts. The United States played no role in choosing the companies, the administration has said.
Disclosure of those contracts has provided substantial fuel to critics of the Iraq war, both in the United States and abroad, who contend that the enormous Iraqi oil reserves were a motivation for the American-led invasion — an assertion the administration has repeatedly denied.
Iraq’s oil minister, Hussain al-Shahristani, has condemned the Kurdistan deal as illegal because it was not approved by Iraq’s central government and was struck without an oil law, which has still not been passed.
After the deal was signed last year, a senior State Department official in Baghdad criticized it, saying, “We believe these contracts have needlessly elevated tensions between the K.R.G. and the national government of Iraq.”
The State Department said Wednesday that it had discouraged the deal. Hunt officials declined to comment, and Kurdish government officials said there was no impropriety.
The State Department told Hunt that “we continue to advise all companies that they incur significant political and legal risk by signing contracts” before then, wrote Jeffrey T. Bergner, an assistant secretary for legislative affairs at the department, in one of the documents made public on Wednesday.
"Chinese can't sell off their reserves of American currency because oil can only be purchases in American dollars."
As of June 30, 2006 China had purchased $700 billion in US long-term assets. A huge and growing category of purchase has been the agency bond. These are bonds made of loans -- often home mortgage loans -- sold to government sponsored enterprises, or agencies, like Fannie Mae and Freddie Mac. In other words, they are US mortgages.
One statistic in the financial marketplace bares this out most of all: In 2002, the total Chinese investment in U.S. agency mortgage-backed securities was just over $100 million. By June 2006, this number had grown to over $107 billion -- a nearly 1,000-fold increase in less than 5 years.
-- Alfonso Jackson US HUD Secretary May 23,
Updated
6/17/2008 6:56 AM
TOP EXPORTERS TO IRAQ
January through April (in millions):
United States: $737
Turkey: $648
China: $358
Thailand: $110
South Korea: $102
Source: Global Trade Information Services
China is now Iraq's third-largest trade partner behind the USA and Turkey, according to Global Trade Information Services, a firm that tracks trade statistics.
don't worry. The administration doesn't plan to sell out its own mission in Iraq. The Iraqis have precious little bargaining power in the matter...
I guess we'll wait have to wait and see. The Iraqi's have the oil and they have Iran to bargain with plus a shitload of trading partners who can't wait to give them money, goods and services. If Iranian Army rolls across the border to defend Iraqi oil fields - at the request of Iraq - I guess we'll just bomb the oil fields....the whole point of the war.