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Friday, 05 December, 2008, 17:10 GMT | more >>

Iraq close to deal with supermajors



By Upstream staff 

Iraq is finalising discussions with supermajors to help the country boost its production, an Oil Ministry official said today.

Last December, Shell, BP, ExxonMobil and Chevron, submitted technical and financial proposals to develop five fields in southern and northern Iraq.

The official told The Associated Press that only "one or two" issues remain under discussion, including "mechanism of payment."

The official did not identify the companies and spoke on condition of anonymity because he was not supposed to discuss the matter with the media said the International Herald Tribune.

Iraq intends to compensate these companies with crude oil rather than in cash.

The UN International Advisory and Monitoring Board has expressed concern over paying with oil instead of cash because of problems in determining fair market value.

A 2003 UN resolution, extended through the end of this year, states that all of Iraq's oil proceeds must be deposited into an account in the New York-based Federal Reserve Bank under supervision of the UN board.

The resolution also calls for taking five percent of oil sales to compensate Kuwait for the losses it suffered during the 1990 Iraqi invasion.


Thursday, 10 April, 2008, 16:06 GMT  | last updated: Thursday, 10 April, 2008, 16:06 GMT

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