Iraq approves US$1 billion oil contract

[k98nights]

Iraq approves US$1 billion oil contract

24/01/2012 19:28

ERBIL, Jan. 24 (AKnews) – Iraqi Council of Ministers has approved an oil contract with a South Korean company that is worth about US$998 million, a statement posted on the website for the Iraqi government spokesperson Ali al-Dabbagh said.

The statement does not give further details about the contract, however, Reuters quotes an Iraqi official as saying the South Korean firm is Samsung Engineering Co.

RY/Aknews

http://www.aknews.com/en/aknews/2/286216/

[jeepguy]

wow that is a hunk of change!!! ,,,, now if south korea will use this load of oil for energy, prop the industrial out put , and ohhhh,,,, raise their currency up too .01 cent o kay okay .05 ,,,,, that would be a good out come { i m o } ------- > hey k 98 nights good post of oil ,,,, did you get a chance too read this,,,,,,, BAGHDAD / Aswat al-Iraq: Iraq’s Prime Minister Nouri al-Maliki has said on Tuesday that American Companies have no control on Iraqi Oil, rejecting the description of Iraq as a “cake,” shared by different forces inside and outside the country.

“American companies have no control over Iraq’s Oil,” Maliki said in an interview with al-Arabiya TV Satellite Channel on Tuesday, adding that “the licensing session for the investment of Iraqi oil fields had been transparent and clear, and the American companies had failed to get more than one contract, sharing it with other companies.” wonder if maliki understands the idea of monoply

[ICantBelieveItsMicheal]

How can they approve for this amount of money when there MONEY IS WORTH ANYTHING... This "investment" is making no sense...You get a huge contract and your country doesn't even have its own currency worth anything...

[Patriotic_mess]

Makes you wonder if maybe if maybe the HCL was passed behind the scenes...

[Butifldrm]

The Iraqis were savvy in their negotiations. Normally, when firms develop oil fields the terms of the deal give companies ownership over a certain percentage of the yet-to-be-tapped oil.

But with the Iraqi deal, most firms don't actually own any of the oil. They are instead paid a service fee on each barrel that they pump.

The return on their investment is still attractive -- the energy research firm EPRINC estimated it at 15%. But it means they can't claim as much of the oil as an asset on their balance sheets, which can hurt their stock price.

It also means that over 90% of the oil revenue the fields generate will stay in Iraq.

Great article. to read more:

http://money.cnn.com/2011/10/28/news/international/iraq_oil/index.htm