The American Fund of heritage has prepared for George Bush's administration the special report on the future strategy of Washington concerning Iraq after Saddam Hussein's overthrow. The document contains positions concerning privatization of the Iraq?s petroleum industry. Except for that it is supposed, that the new government of Iraq does not have to fulfill the agreements concerning development of national petroleum industry of the country, which were concluded with other countries before.
Three Russian companies LUKOIL, Zarubezhneft, Mashinoimport have received the letter signed by the Iraq?s deputy minister of petroleum stating that Iraq cancels the contract on petroleum deposit of Western Kurna.
The Ambassador of Iraq in the Russian Federation, doctor Abbas Halaf, has informed about it. As he said, " the reason is the fact, that since the moment of conclusion of the contract on oil recovery in the area of Western Kurna in 1997, "LUKOIL" didn?t work in Iraq". The missive was directed today to the head of LUKOIL company, Vagit Alekperov, and also to the Ministry of energy of the Russian Federation, has informed Abbas Halaf. Iraq has named the reason - inability of the Russian party to carry out obligations on development of the deposit.
Cost of the developmental contract of Iraq?s petroleum deposits is estimated in 20 billion dollars. In case of removal of sanctions against Iraq LUKOIL could within three years increase extraction in deposit of Western Kurna up to 30 million tons. The deposit in Western Kurna is the largest in Iraq among offered for development to the foreign companies.
The consortium, which was supposed to develop it, except for LUKOIL, Zarubezhneft and Mashinoimport, includes also the Western firms. The decision to terminate the contract was accepted December9.
Moscow is afraid, that after military operation in Iraq former contracts will be cancelled, and American companies will get the Iraqi petroleum.
Author: Sergei Zanin
