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China and Iraq Sign $3bn Oil Deal

by moonwolf | August 28, 2008 at 02:19 pm | 168 views | 5 comments | 12 recommendations

High oil prices have put al-Shahristani in a strong negotiating position [EPA]

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While American and European oil companies waited for a free ride or preferential conditions from the Government of Iraq as the country tenders for oil service contracts, China's CNPC, Asia's largest oil and gas company closed the first deal with the Iraqi Government since the fall of Saddam Hussein.

Iraq and China have agreed the terms of a $3 billion oil service contract, Iraq's oil minister says, announcing the first major oil contract with a foreign firm since the fall of Saddam Hussein.

The deal means China has taken the first opening since the US-led invasion for work on the world's third-largest reserves.

Hussain al-Shahristani, Iraq's oil minister, warned that time was running out for big Western oil firms, which have jostled for years for Iraqi contracts, to seal even the short-term deals that were expected to mark their return to the country.

Iraq and China's state-oil firm CNPC agreed the renegotiated terms of an old deal signed in 1997 to pump oil from the Adhab oilfield, Shahristani said.

CNPC is Asia's biggest oil and gas company.

"Finally we have reached an agreement," Shahristani said after clinching the deal.

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Emilio Lizardo

flagged this story as Good Stuff

at 15:12 on August 28th, 2008

moonwolf, I like this story. It's good stuff.

BigT

flagged this story as Good Stuff

at 15:19 on August 28th, 2008

moonwolf, I like this story. It's good stuff.

Since Iraq was a "war for oil" does that mean we've been lied to all along and it wasn't the Americans in Iraq but the Chinese? I wonder if anyone is even going to change their minds about the reason for the war after this news?

Something tells me no.

moonwolf

at 15:31 on August 28th, 2008

Big T,

Thanks for the flag.

I have never been one who bought into the oil scenario.

Actually I think the war was for payback and hubris and a chance to show the world what American military muscle could do. The neocons didn't jeopardize the future of America for anything as reasonable as strategic oil supplies. Just a power trip by a bunch of lunatics that's all.