Iraq to Award Oil Field To ExxonMobil, Shell

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sent by protect_democracy since 13 days 13 hours 39 minutes, published about 13 days 7 hours 13 minutes
First it was the weapons of mass destruction, then it was the war on terrrr, and then, of course, there was the day that God told George Bush to end the tyranny in Iraq. It's probably just coincidental that Iraq is expected to award its giant West Qurna-1 oil field in southern Iraq to a consortium comprising Exxon Mobil Corp. and Royal Dutch Shell PLC, a senior Iraqi oil official said.
tags: iraq, oil, death, lies
6 commentscategory: Republicans karma: 161

comments

  1. #1    "rejected Iraq's maximum remuneration fee of $1.90 a barrel" Does that mean the amount that Iraq receives per barrel? Or what the Oil Companies get?
    Does the oil belong to ExMob or the Iraqi Govt when it's sold into the market? If it's Iraq's to sell and they get (what was it today?) $78/bbl and they pay ExMob $1.90, they getting some great margin outta that. If $1.90 is all that Iraq gets from each barrel, they should leave it in the ground and wait for a better deal.
    written by CwV since 13 days 13 hours 25 minutesCwV
  2. #2    which comment?

    The way this works, CwV, is that the various partners get their shares of the revenues based on their percentage ownership, after all expenses and operating costs and capital recovery are deducted from the gross income. Among those expenses and operating costs is a fee paid to the company that manages the production operations. In this case the proposed amount of the fee is $1.90 per barrel. The amount may be a bit lower than Exxon and Shell are used to getting in other countries, but not way out of line.
    written by protect_democracy since 13 days 13 hours 18 minutesprotect_democracy
  3. #3    So, the production fees are in addition to a share of the after-overhead profit?
    written by CwV since 13 days 13 hours 14 minutesCwV
  4. #4    Yes, precisely.
    That fee comes out of the gross revenue before the profits are split.
    written by protect_democracy since 13 days 13 hours 11 minutesprotect_democracy
  5. #5    Iraq got shafted again! BIG TIME!!! But how could it not with that big 1.2 bln embassy sitting there?
    written by Sparrows since 12 days 17 hours 42 minutesSparrows
  6. #6    Actually, Sparrows, this sounds like Iraq made a reasonable deal. That fee is lower on this contract than on similar contracts elswhere in the world, by 20-50 cents. ExMob and Shell were bargained down to it, despite the coordinated tactics between all the "competitors" in the bidding, that walked away because the offer was too small. Iraq held out for the better deal (for them) and eventually the Bigs' PetroLust got the better of them and they inked the deal.
    written by CwV since 11 days 22 hours 19 minutesCwV
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