TSXV:ART.H - Post by User
Comment by
shleevoon Oct 16, 2009 11:41am
294 Views
Post# 16394057
RE: Iraq oil law...
RE: Iraq oil law...That's the whole point. VST will sell this company without question. Buy $35 million, sell $XX Billion. I also believe many of the majors out there might be holding back until after the law is passed because they may get burned on any Kurdistan opportunities by signing with Iraq. Iraq has blacklisted every company that has any interest in Kurdistan and they will likely continue that trend even after the oil law is passed.
Iraq's wealth was taken by the US, English and French until Sadam Nationalized everything in the 70's. Iraqis are very bitter about foreigners taking their oil. The oil minister was even criticised for handing out the service contracts at 2 bucks!!! Kurdistan is the only region in Iraq that understands how to attract foreign investment while still keeping most of their resource under their control. The KRG's take is a whopping 85%!!! On top of that, Iraq imposes a 35% tax on income. It's a lot more complicated than that, but at the end of the day, that's what it will cost.
Iraqis are concerned that foreigners will steal their oil, yet its their own people that are stealing it now. Thats what you get with a corrupt oil minister. Once the law is passed, (there's a couple others that have to be passed with it), that will pave the way for foreign investment and do wonders for shareholders.
And lastly, there's no question there's oil in black mountain, just need to find it and calculate how much.