China's oil deal with Iraq is opening doors for a future where it can sign deals on its own terms
Iraq is the third largest producer of oil in the world and is trying to increase crude oil output from the current 2.5 million barrels a day to 3 million barrels a day by the end of 2008, and 4.5 million barrels a day by the end of 2013. To achieve its objective, Iraq needs investment both on the financial as well as on the technical front. China's deal provides it both. It now provides confidence to Hussain al-Shahristani, Oil Minister, Iraq, to say that time is running out for major oil firms that have been jostling to get Iraqi oil contacts. It is a direct invitation to major oil firms for fresh negotiations. And the Chinese deal is an indication that Iraq has toughened its terms. Thus the deal has set a precedent for new terms and conditions for future negotiations with other international oil majors like BP, Exxon Mobil, Shell and Total.
Saddam Hussein’s regime had signed contracts with five major foreign oil companies before the American invasion in 2003, but were never operationalised due to UN sanctions. Now, the new regime considers to revive those contracts but on new terms. Thamir al-Ghadban, former Iraqi Oil Minister, said, “After long debate, we decided that those oil contracts should be reconsidered, not to be accepted just like that, because things have changed, the price of oil has changed, the regime is new.” The new deal is giving Iraq hope for a brighter future, where it may not have to overtly depend on Uncle Sam''s ''largesse''...
Iraq is the third largest producer of oil in the world and is trying to increase crude oil output from the current 2.5 million barrels a day to 3 million barrels a day by the end of 2008, and 4.5 million barrels a day by the end of 2013. To achieve its objective, Iraq needs investment both on the financial as well as on the technical front. China's deal provides it both. It now provides confidence to Hussain al-Shahristani, Oil Minister, Iraq, to say that time is running out for major oil firms that have been jostling to get Iraqi oil contacts. It is a direct invitation to major oil firms for fresh negotiations. And the Chinese deal is an indication that Iraq has toughened its terms. Thus the deal has set a precedent for new terms and conditions for future negotiations with other international oil majors like BP, Exxon Mobil, Shell and Total.
Saddam Hussein’s regime had signed contracts with five major foreign oil companies before the American invasion in 2003, but were never operationalised due to UN sanctions. Now, the new regime considers to revive those contracts but on new terms. Thamir al-Ghadban, former Iraqi Oil Minister, said, “After long debate, we decided that those oil contracts should be reconsidered, not to be accepted just like that, because things have changed, the price of oil has changed, the regime is new.” The new deal is giving Iraq hope for a brighter future, where it may not have to overtly depend on Uncle Sam''s ''largesse''...
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
