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paladin
03-07-2008, 01:03 PM
Iraq and China are close to wrapping up negotiations on a $1.2-billion oil contract that was originally agreed to in 1997 under Saddam Hussein's government, an Oil Ministry official said Thursday.

State-owned China National Petroleum Corp. signed the deal to develop the billion-barrel al-Ahdab oil field in the midst of U.N. sanctions that barred direct dealings with Iraq's oil industry.
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al-Ahdab Field
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Beijing was waiting for sanctions to end when the U.S. invasion in 2003 overthrew Saddam's government. The two countries restarted talks in October, 2006.

"We are expecting that the next round of discussions, due to be held in April, will finish the negotiations," the official told The Associated Press.

The official said the Iraqi government presented proposals to amend the original production-sharing contract, with the country's new oil and gas law has bogged down in parliament.

"If they (CNPC) are ready to work, then they will sign the contract," added the official who declined to discuss his ministry's proposals.

The official added that the presence of Wasit province governor, where al-Ahdab oil field is located, in last week discussion that held in Amman, Jordan, "was very important as he assured them about the protection Iraqi security forces can offer in case they want to start working."

Wasit, about 160 kilometers southeast of Baghdad, has been the scene of sporadic attacks since the U.S.-led invasion in 2003.

Tim_H
03-07-2008, 01:20 PM
China needs the oil so they can make our stuff.

Nicholas Scheuer
03-07-2008, 01:49 PM
OK. Now China can pony up for some military aid, so the oil will be accessable.

Tim_H
03-07-2008, 02:03 PM
OK. Now China can pony up for some military aid, so the oil will be accessable.

Arent they loaning us the money for the war to begin with? hmm...wait a minute...

LeeG
03-07-2008, 02:52 PM
gotta get that oil out someday

Nicholas Scheuer
03-07-2008, 03:26 PM
But you see, if China takes over the fight, they'll have to buy spare parts for all the weapons we gave the Iraqis, so our Military-Industrial Comples can start to make some real money, because as we know from Detroit, spare parts for a vehicle cost WAY more than factory parts for the original vehicle. Double that profit margin again for weapons.

Moby Nick

LeeG
03-07-2008, 03:29 PM
well we better start selling them helicoptors and armored vehicles before someone else does.

Tim_H
03-07-2008, 03:30 PM
They might just skip the middle man though and send the parts direct from the factory......in China.

Bob Adams
03-07-2008, 06:55 PM
They might just skip the middle man though and send the parts direct from the factory......in China.

Ain't that the truth.

Andrew Craig-Bennett
03-07-2008, 06:59 PM
Actually this is a very positive development.

Up to now, China has been obsessed with sourcing its oil from countries where the USA has negligible influence - Iran, Sudan, Angola. This is the first contract that China has signed with a country seen as within the US sphere of influence.

JBreeze
03-07-2008, 07:33 PM
ACB....

I never thought China was obsessed in avoiding countries within the US sphere....they tried to buy Unocal for $18.5 biilion and have investments in S. America and Canada....

Why is this different?

Andrew Craig-Bennett
03-08-2008, 05:35 AM
I should clarify - the Chinese Government has an understandable concern with security of strategic supplies - not just energy but raw materials as well. This is really separate from having investments in places where China sells to.