Pragmatism prevails in Iraq's oil sector
Despitea disappointing licensing round and political opposition toprivate-sector investment, Iraq is making gradual upstream progress –with the help of IOCs, writes Digby Lidstone
WITH 115bn barrels of proved and relatively accessible crude reserves,Iraq's geology rarely fazes oil prospectors. It is above ground thatthe obstacles lie. Delays to a new oil law, tensions between thecentral government in Baghdad and the Kurdish north, and a botchedlicensing round in June have offered no encouragement to foreign oilcompanies considering investing in Iraq's upstream.
Yetmany are persisting regardless: last month, Iraq approved a deal for BPand China National Petroleum Corporation (CNPC) to develop the 17bnbarrels Rumaila field (PE 10/09 p26). Shell is in the process of brokering a gas deal in the south. Meanwhile, companies continue to beat a trail to Iraqi Kurdistan.
Todays news was another nonevent other than it has now been reconfirmed in writing from the company.
Everything here was already known for the most part.
Allot hinges on the upcoming election and right now it is anyones guess as to what will come.
The US imho did not just go after wnd's , but are there for the oil as are many other countries (China , Korea etc).
one way or another the oil will be discovered and will make all involved money.
We were lucky to have gotten into the game early on as it is going to be majors moving in come december.
Some of the sell off today is the daytraders thinking there was more to come in this news release.
Somewhat disappointing in that we have to wait a little longer for resource estimates to be put in writing.However all guestimates are huge and will come to fruition in good time.
iN the mean time ....buying more on the dips as our time is soon at hand.