Mili Note: Mission Accomplished, Obama! Can we pull out now? You promised!
Western producers like BP, Exxon Mobil, and Shell are enjoying their best access to Iraq’s southern oil fields since 1972, but a weaker government could be on the way
(Bloomberg) — BP Plc and Exxon Mobil Corp. took the best deal they could get in Iraq last year when they won the largest oil contracts since addam Hussein was toppled in 2003. Oil companies may wait a long time to get a better one.
Parliamentary elections may produce a weak or unstable government incapable of tendering new oil contracts, said Samuel Ciszuk, a London-based analyst at IHS Global Insight. He said he does expect the 10 technical-services contracts won by Exxon, BP and 20 other companies to be honored.
“One thing that’s fairly certain is there won’t be a strong coalition, so it may take time for the next government to get its act together,” Ciszuk said in a telephone interview.
“Bottlenecks could hold up production increases” if no government forms by June.
Western producers haven’t had access to oil fields in southern Iraq since 1972, when the country nationalized production including concessions owned by the companies now known as BP, Royal Dutch Shell Plc and Exxon.