ARABS AGAINST KURDS
Iraq's oil reserves, the world's third largest, offer hope
for a country struggling to rebuild after more than six years of
bloodshed and destruction triggered by the invasion.
But the tussle for control over the oil wealth has also
pitted Arabs against Kurds and prevented the passage through
parliament of modern hydrocarbon legislation.
The session underscored the fierce debate over how best to
boost oil production of 2.3 million to 2.4 million barrels per
day, below where it stood before the invasion.
The 32 firms competing for the deals include Exxon Mobil
(XOM.N), Royal Dutch Shell (RDSa.L) and Total (TOTF.PA).
They will have to pay Iraq $2.6 billion in signature bonuses
and also have to carry Iraq's 25-percent share of the
development costs, which Baghdad will pay back over time in oil.
The semi-autonomous Kurdish authorities in the north have
struck their own parallel energy deals with private firms but
the Oil Ministry has rejected those as illegal.
Kurdish officials have warned in return that they might
reject any contract the Oil Ministry issued to a private firm to
develop the Kirkuk oilfields, a major oil-producing region that
Kurds claim as their ancestral capital.
"If (Shahristani) dares to sign these contracts, he must
assume responsibility for the consequences," Balou said.
(Additional reporting by Ahmed Rasheed; writing by Missy Ryan;
editing by William Hardy)
Iraq's oil reserves, the world's third largest, offer hope
for a country struggling to rebuild after more than six years of
bloodshed and destruction triggered by the invasion.
But the tussle for control over the oil wealth has also
pitted Arabs against Kurds and prevented the passage through
parliament of modern hydrocarbon legislation.
The session underscored the fierce debate over how best to
boost oil production of 2.3 million to 2.4 million barrels per
day, below where it stood before the invasion.
The 32 firms competing for the deals include Exxon Mobil
(XOM.N), Royal Dutch Shell (RDSa.L) and Total (TOTF.PA).
They will have to pay Iraq $2.6 billion in signature bonuses
and also have to carry Iraq's 25-percent share of the
development costs, which Baghdad will pay back over time in oil.
The semi-autonomous Kurdish authorities in the north have
struck their own parallel energy deals with private firms but
the Oil Ministry has rejected those as illegal.
Kurdish officials have warned in return that they might
reject any contract the Oil Ministry issued to a private firm to
develop the Kirkuk oilfields, a major oil-producing region that
Kurds claim as their ancestral capital.
"If (Shahristani) dares to sign these contracts, he must
assume responsibility for the consequences," Balou said.
(Additional reporting by Ahmed Rasheed; writing by Missy Ryan;
editing by William Hardy)