Worley surges on Iraq deal

[La_Serpiente]

Worley surges on Iraq deal

SHARES in engineering services provider Worley Group surged nearly 15 per cent in early trade today after the company said it had won a contract to rebuild oil infrastructure in Iraq.

Worley shares increased 45c to $3.40 shortly after the market opened.

By 10.45am (AEDT) shares were trading up 28c, or 9.5 per cent, at $3.33.

Worley submitted a bid in late July in partnership with US engineering firm Parsons Group Ltd.

Yesterday the group said the joint venture had won an $US800 million ($1.04 billion) contract for two years, with three one-year options to extend.

The contract includes a range of services including extinguishing oil well fires, cleaning up oil sites, designing and constructing oil infrastructure and conducting oilfield, pipeline and refinery maintenance.

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Worley surges on Iraq deal

Remember that song? Money Money Money, MONEY!!!

[Mikimouse]

1. I have a question about all of these contracts...

What happens to them when the Iraqi government is taken over by the Shias, something that looks increasingly possible. Do they then become null and void? If so, and the US invades again, under the auspices of restoring them, will that be viewed, internationally, as proof that the US had no other motive besides the theft of Iraqi natural resources? Just a few thoughts.

[Columbia]

2. I don't think they'd mind

Since we are the ones who are paying for all this reconstruction stuff. They have nothing to lose and everything to gain.

[Mikimouse]

3. I'm not sure that all of the other nations are as

oriented toward money issues as are we. I could be mistaken, but the international community might interpret that scenario as the straw that broke the camel's back. Besides that, another invasion would be so costly, not only in dollars, but in morale as well (not just militayr morale either), that the nation would be severely weakened and vulnerable, both internally and internationally. Then, any furtehr strain on the economic system would potentially cause the US economy to fail. No military action is necessary on anyone else's part.