Tuesday, July 01, 2008

Oil Iraq

Riad Taher of the newly formed group, Friendship across Frontiers, is fuming about the Iraq oil law. He is not the only one furious about what the UK and USA are trying to impose:

The hasty attempt by the US/UK administration in post occupation to persuade the docile Iraqi-in-Government to formalise the Hydro Carbon Law remains undiminished. Particularly in the absence of tangible security and improvements of living standards to the Iraqi people. The Law was resented and rejected by most Iraqi oil experts on the basis that this law is biased as it is believed that the original formulation, was by experts from Exxon – Mobil – BP, but fronted by Iraqis!! The other objections were focused on the production sharing contract which understandably is suited for high risk production field rather than to the Iraqi discoveries which enjoy low risk and low production costs (approx 1US$ per bbl). Also the duration of these contracts are longer than economically envisaged as acceptable (maximum 15 years).


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