October 28, 2006

PUMP UP THE VOLUME:

Iraq, China to Revive 1997 Oil Deal (Associated Press, October 28, 2006)

China and Iraq are reviving a $1.2 billion deal signed by Beijing and Saddam Hussein's government in 1997 to develop an Iraqi oil field, Baghdad's oil minister said Saturday.

Officials will meet next month to renegotiate the agreement over the al-Ahdab field, said Iraqi Oil Minister Hussain al-Shahristani. He was wrapping up a three-nation tour to secure investment for Iraq's oil industry.

"If agreement is reached very quickly then I expect them to start working right away," al-Shahristani said at a news conference.

Posted by Orrin Judd at October 28, 2006 5:35 PM
Comments

On the surface the deal looks good for both. The field is not remote so lot of infrastructure in place for fairly quick production. Just guessing what China's commodity return will be may be enough to pull them away from the hectic spot market. Should drop crude price.

Posted by: Tom Wall at October 28, 2006 8:57 PM
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