White House Warned U.S. Company About Oil Deal With Kurds As Another Signs A New Contract

[JWing]

The Houston-based Marathon Oil signed a deal (http://musingsoniraq.blogspot.com/2010/10/kurdistan-signs-new-oil-deal-with-us.html) with the Kurdistan Regional Government (KRG) in October 2010 to develop four oil fields in Irbil province. Marathon is the fourth largest combined petroleum company and fifth largest refiner in the United States. The White House warned the corporation about doing business in Kurdistan just as another U.S. firm inked a deal with the Kurds.

continued
http://musingsoniraq.blogspot.com/2010/11/white-house-warned-us-company-about-oil.html

[TAV]

The Houston-based Marathon Oil signed a deal (http://musingsoniraq.blogspot.com/2010/10/kurdistan-signs-new-oil-deal-with-us.html) with the Kurdistan Regional Government (KRG) in October 2010 to develop four oil fields in Irbil province. Marathon is the fourth largest combined petroleum company and fifth largest refiner in the United States. The White House warned the corporation about doing business in Kurdistan just as another U.S. firm inked a deal with the Kurds.

continued
http://musingsoniraq.blogspot.com/2010/11/white-house-warned-us-company-about-oil.html


Wednesday, November 17, 2010

White House Warned U.S. Company About Oil Deal With Kurds As Another Signs A New Contract (http://musingsoniraq.blogspot.com/2010/11/white-house-warned-us-company-about-oil.html)



The Houston-based Marathon Oil signed a deal (http://musingsoniraq.blogspot.com/2010/10/kurdistan-signs-new-oil-deal-with-us.html) with the Kurdistan Regional Government (KRG) in October 2010 to develop four oil fields in Irbil province. Marathon is the fourth largest combined petroleum company and fifth largest refiner in the United States. The White House warned the corporation about doing business in Kurdistan just as another U.S. firm inked a deal with the Kurds.

The Obama administration advised Marathon Oil not to invest in the KRG (http://www.iraq-businessnews.com/2010/11/03/us-authorities-advised-marathon-oil-against-krg-deal/) last month. U.S. policy is to tell American companies not to sign petroleum deals with the Kurds because there is no national oil law between them and Baghdad. They told Marathon that they are taking a risk working in Kurdistan without the central government’s okay. The Oil Ministry has called all oil contracts with the KRG illegal.

That apparently didn’t stop Arkansas-based Murphy Oil from finalizing a deal (http://www.iraq-businessnews.com/2010/11/05/murphy-oil-to-explore-in-kurdistan/) with the KRG as well. On November 4, Murphy Oil said that its subsidiary Murphy Central Dohuk Oil Co. had come to an agreement with the Kurds to explore the Central Dohuk field. They will have a 50% interest in a joint venture with the KRG. They plan to start exploratory work by 2012.

Marathon and Murphy are the seventh and eighth American oil companies to enter Kurdistan. Because Baghdad opposes foreign firms operating in the KRG, and all the work is largely looking for oil deposits rather than actually pumping petroleum, only small to medium-sized companies operate in Kurdistan right now. They are hoping that the Kurds will have enough influence in the new Iraqi government to come to some type of understanding over exports. If that happens businesses could switch to oil production. If not, Marathon and Murphy will spend the next couple years poking around Irbil and Dohuk marking oil fields with little to show for it.

SOURCES

Iraq Business News, “Murphy Oil to Explore in Kurdistan,” 11/5/10

Iraq Oil Report, “US Authorities Advised Marathon Oil Against KRG Deal,” Iraq Business News, 11/3/10

Posted by Joel Wing at 6:50 AM (http://musingsoniraq.blogspot.com/2010/11/white-house-warned-us-company-about-oil.html) http://img1.blogblog.com/img/icon18_email.gif (http://www.blogger.com/email-post.g?blogID=1953410733493889728&postID=1924335138946260905)http://img2.blogblog.com/img/icon18_edit_allbkg.gif (http://www.blogger.com/post-edit.g?blogID=1953410733493889728&postID=1924335138946260905)
Labels: Kurds (http://musingsoniraq.blogspot.com/search/label/Kurds), Oil (http://musingsoniraq.blogspot.com/search/label/Oil)



Is this your post??????????? WOULD YOU PLEASE PROVIDE MORE INFO?????? ARE YOU A REPORTER??????? THIS IS HUGE NEWS???????

[JWing]

I run a blog. That was not big news. The U.S. has had that policy since the Bush administration. They just tell American oil companies that they may not get any return on their investment in Kurdistan until an oil law is passed and therefore shouldn't do business there yet.

[TAV]

I never saw any news where the U.S. takes a position and advises anyone or company NOT TO INVEST IN IRAQ:

"The Obama administration advised Marathon Oil not to invest in the KRG (http://www.iraq-businessnews.com/2010/11/03/us-authorities-advised-marathon-oil-against-krg-deal/) last month. U.S. policy is to tell American companies not to sign petroleum deals with the Kurds because there is no national oil law between them and Baghdad. They told Marathon that they are taking a risk working in Kurdistan without the central government’s okay." (INFO TAKEN FROM YOUR POST)


This would be/is HUGE news!!!

With all the flip/flopping since this investment started, the misleading news from the media, speculators speculating with hearsay intel AND now the current administration advising not to invest due to no oil law between the Kurds and Baghdad!!!!!!!!


Reading your article against current Iraqi events confirms and tells me this:


1.) The U.S. is monitoring progress of the HCL to even consider giving advise!!!!


2.) The U.S. didn't say it's never going to happen or don't do it but simply warned:

"there is no national oil law between them and Baghdad"!!!!!
(INFO TAKEN FROM YOUR POST)


3.) With all that has been taking place with the slow economy and the speculation of a collapes dollar, COMPANY BAILOUTS but yet the administration monitoring those companies that are taking steps to secure contracts with Kurds:


"They told Marathon that they are taking a risk working in Kurdistan without the central government’s okay. The Oil Ministry has called all oil contracts with the KRG illegal.

That apparently didn’t stop Arkansas-based Murphy Oil from finalizing a deal (http://www.iraq-businessnews.com/2010/11/05/murphy-oil-to-explore-in-kurdistan/) with the KRG as well." (INFO TAKEN FROM YOUR POST)



This definitely tells me that the administration is playing a role in the the formation of their economy!!!!



4.) The administration only giving a warning of what "I think and believe to be the HCL (Hydrocarbon Law)/Oil Law" BUT nothing concerning the UN Chapter VII tells me maybe Chapter VII isn't a factor as everyone is lead to believe or maybe they've figured a way to go around those sanctions place on Iraq....



SOME INFO ON UN CHAPTER VII SANCTIONS AGAINST IRAQ:

"Nearly two decades after the first Gulf war and six years after Saddam Hussein was removed from power, Iraq still is subject to 73 United Nations resolutions.
Now Iraq's foreign minister says his country "will not regain full sovereignty and independence without getting rid of these resolutions."
Speaking to reporters in Washington, Hoshyar Zebari said Monday that Iraq has paid "billions" of dollars under Chapter 7 of the U.N. sanctions placed on Iraq as a result of the 1990 Iraq invasion of Kuwait and subsequent war"
http://articles.cnn.com/2009-07-21/politics/iraq.sanctions_1_iraq-fm-foreign-minister-zebari-sanctions?_s=PM:POLITICS



IF YOUR INFORMATION IS CORRECT.......YES THIS WOULD BE HUGE NEWS, ENOUGH FOR ME TO CONTINUE HOLDING OUT BECAUSE THE HIGHER POWERS HAS CONFIRMED THEIR INTEREST INSTEAD OF THE CONTINUOUS SAME OLE' SAME OLE' BROKEN RECORD REPORTING:


"IRAQ HAS MADE GREAT STRIDES IN PROGRESS BUT STILL VERY FRAGILE AND A LONG WAY FROM SECURE AND STABLE COUNTRY!!!"


I SWEAR I BELIEVE EVERY PERSON WHO REPORTS IRAQ'S CONDITION IS READ FROM THE SAME SCRIPT!!!!!

[JWing]

You're blowing things out of proportion. U.S. policy since the Bush administration is to advise American oil companies to not invest in Kurdistan's oil and gas sector. That is not all of Iraq, but just the KRG, and that's because there is no oil law. Without an oil law those companies will spend a couple million looking for oil fields, but will have no way to pump nor export oil so it's a waste of money for now. Plus the Kurds probably only have about 20-25% of Iraq's oil. The real prize is in the south.