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China and Russia Tap Iraq's Vast Oil Reserves PDF Print E-mail
by Tom McGregor    Tue, Dec 15, 2009, 09:32 AM

China Oil.jpgCritics claimed the 2003 U.S. invasion of Iraq had been driven by the need for oil, however major United States' oil corporations remained largely absent from an Iraqi auction of oil deals snapped up by Chinese, Russian and other firms.

According to Reuters, a news wire service, "Iraqi officials said this proved their independence from U.S. influence and that their two bidding rounds this year for deals to tap Irag's vast oil reserves, the world's third largest, were free of foreign political interference."

On Saturday, the Oil Ministry completed its second bidding round after awarding seven of the oild fields offered for development, adding to deals from its first auction in June which could together take Iraq up to a capapcity to pump 12 million barrels per day.

Iraq's government spokesman Ali al-Dabbagh, said, "for us in Iraq, it shows the government is fully free from outside influence. Neither Russia nor America could put pressure on anyone in Iraq - it is a pure commercial, transparent competition. No one, even the United States, can steal the oil, whatever people think."

As reported by Reuters, "Russia's Lukoil on Saturday clinched a deal to develop Iraq's supergiant West Qurna Phase Two oildfield after having failed to convince Iraq to bypass the auction and revive an old Saddam Hussein-era deal for the field."

Earlier this year during a visit, Lukoil executives had invited the media to a news conference where they had anticipated to announce the renewed Saddam deal. But they left empty-handed and visibly annoyed after a few terse remarks.

Of the four fields bid on by U.S. firms in the first round, only one U.S. firm bid, Exxon-Mobil, won a major prize, leading the group to clinch a deal for the West Qurna Phase One supergiant oil field.

"By contrast," Reuters reports that, "Chinese state oil firms were involved in every first round bid and made a strong showing in the second."

To read the entire article from Reuters, link here:

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