This is something that I have been following for awhile, and hoping that Iraq can reach the kind of stability needed to bring these companies in. What is interesting though, is that the recent and future requirements for oil in the world, will fuel the urgency for such oil seeking operations.
But the main reason I posted this is security. Security contractors will be a vital element to the future of these operations. The security will be mostly dominated by local Iraqi contracts using Iraqis. But for the protection of engineers and managers, they will seek more specialized companies that can provide those services. They will also need individuals that can advise on and help manage the security operations at the various oil production sites. So I predict that Iraq will be providing jobs to the industry, regardless of what president we have, for years to come.
Also, thanks to Doug for throwing the article my way. We’ll see how this develops over the months and years to come, but I do believe that the urgency is there, to help propel this along. –Head Jundi
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Basra Oil Fields Photo by Moises Saman for The New York Times
June 19, 2008
Deals With Iraq Are Set to Bring Oil Giants Back
By ANDREW E. KRAMER
BAGHDAD — Four Western oil companies are in the final stages of negotiations this month on contracts that will return them to Iraq, 36 years after losing their oil concession to nationalization as Saddam Hussein rose to power.
Exxon Mobil, Shell, Total and BP — the original partners in the Iraq Petroleum Company — along with Chevron and a number of smaller oil companies, are in talks with Iraq’s Oil Ministry for no-bid contracts to service Iraq’s largest fields, according to ministry officials, oil company officials and an American diplomat.
The deals, expected to be announced on June 30, will lay the foundation for the first commercial work for the major companies in Iraq since the American invasion, and open a new and potentially lucrative country for their operations.
The no-bid contracts are unusual for the industry, and the offers prevailed over others by more than 40 companies, including companies in Russia, China and India. The contracts, which would run for one to two years and are relatively small by industry standards, would nonetheless give the companies an advantage in bidding on future contracts in a country that many experts consider to be the best hope for a large-scale increase in oil production.
