Western oil firms clamor for Iraqi deals
Western oil firms clamor for Iraqi deals
BAGHDAD (Reuter): Western oil executives are holding talks in
Iraq to finalize deals that could be activated when sanctions on
Iraq are eased or lifted, Iraqi oil sources and diplomats said
yesterday.
"They now want to remain undercover. Deals reached will remain
dormant until something is done about the embargo," said one
diplomat with close contacts in Iraq's oil industry.
Iraq has the world's second biggest proven oil reserves after
Saudi Arabia. The United Nations imposed sanctions on Iraq soon
after it invaded Kuwait in August 1990.
Iraqi forces were driven out of Kuwait in 1991 but the
sanctions can be lifted only when the UN Security Council is
satisfied that Baghdad complied with all Gulf War-related
resolutions.
The diplomat said the French firm Total was close to reaching
an agreement to develop a giant oilfield in southern Iraq with a
capacity to produce 400,000 barrels per day when sanctions are
lifted.
Executives from Total attended an oil conference in Baghdad
last week and one of its vice presidents, Christophe De Margerie,
said the company planned to invest "several billion dollars" to
develop the oilfield when sanctions are lifted.
The diplomat said another Total vice president, Alain
Lechevalier, stayed behind in Baghdad and was still conducting
talks with the Iraqis to finalize the deal.
Iraqi sources declined comment when asked about what
Lechevalier was doing in Baghdad and the French oilman himself
has not spoken to reporters.
Another French firm, Elf Aquitaine, is linked to talks on the
600,000 bpd Majnoon field, which Iraq says has reserves of 38
billion barrels.
Iraqi oil circles are watching closely what Western oil firms
would do following an executive order from President Bill Clinton
banning U.S. firms from developing oilfields in Iran.
"We are waiting to see whether other Western firms,
particularly Total, will go ahead or forsake the deal under
pressure from the Americans," an Iraqi oil official said.