Russia deal gives US a foothold in Iraqi oilfields

[UpInArms]

http://business.timesonline.co.uk/article/0,,8209-1286908,00.html

CONOCOPHILLIPS has agreed a partnership with Lukoil, the Russian energy company, that could deliver the keys to West Qurna, a huge Iraqi oilfield and the first participation by an American firm in the oil industry of the war-torn country.

The strategic alliance, which includes a 30 per cent interest in oilfields in the Russian Arctic, was announced yesterday after Conoco’s $2 billion purchase of the Russian Government’s 7.6 per cent stake in Lukoil. The American firm said it would seek to buy a further 2.4 per cent in the market and ultimately raise its Lukoil stake to 20 per cent within two to three years.

Conoco will acquire 30 per cent of certain Lukoil interests in Timan-Pechora, a new hydrocarbon province in Northern Russia, but the real prize, analysts say, is in Iraq, where Lukoil claims rights over West Qurna, an Iraqi oilfield with potential reserves of eight billion barrels.

Lukoil’s interest in West Qurna was threatened by the change of regime that followed the American invasion of Iraq, which put a question mark over Saddam-era oil deals. However, the partnership with a US oil company should improve Lukoil’s image, Christopher Granville, chief strategist at United Financial Group, the Moscow brokerage, said.

...more...

[skooooo]

1. Hey that was nice of them!!

Things are looking up!!

[Trajan]

2. To the Conquerors go the spoils ...

The loot ... the booty ...

This war was a war for booty from the very get-go ...

This was the prize ....

[daleo]

3. Quite the image enhancement all right

"the partnership with a US oil company should improve Lukoil’s image"

[dweller]

4. guess the Dow will show an uptick

in the blood for oil market tomorrow?

dp

[bahrbearian]

5. I quess the Iragi's can forget about Russian trying to help them out

They no longer have any interest in what happens.

[HysteryDiagnosis]

6. You leave Chechnya alone.... we'll make the deal. n/t

[bahrbearian]

7. That sounds about Right.