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Iraq
Iraqi foreign minister blames Maliki for insurgency
2014-08-01
[Beirut Daily Star] hiite Prime Minister Nouri al-Maliki
... Prime Minister of Iraq and the secretary-general of the Islamic Dawa Party. Maliki imposed order on Basra wen the Shiites were going nuts, but has proven incapable of dealing with al-Qaeda's Sunni insurgency. Reelected to his third term in 2014...
and his security officials are to blame for the rise of Sunni snuffies who have seized parts of Iraq, the country's Kurdish foreign minister said.

Hoshiyar Zebari's comments are likely to further strain ties between Maliki's Shiite-led government and the Kurds, complicating efforts to form a power-sharing government that can counter Islamic State bad boys.

"Surely the man who is responsible for the general policies bears the responsibility and the general commander of the armed force, the ministers of defence and interrior also bear these responsibilities," Zebari told al-Arabiya television.

"There are other sides who bear responsibility, maybe political partners, but the biggest and greatest responsibility is on the person in charge of public policies," he said.

In July, the Kurdish political bloc ended all participation in the national government in protest over Maliki's saying that Kurds were allowing Death Eaters to stay in their capital Arbil.

Maliki is currently ruling in a caretaker capacity, having won a parliamentary election in April but failing to win enough support from the Kurdish and Arab Sunni minorities as well as fellow Shiites to form a new government.

The United States, the United Nations
...a formerly good idea gone bad...
and Iraq's own Shiite holy mans have urged politicians to form a new government swiftly to deal with the Sunni insurgency.

Islamic State's campaign has fuelled religious tensions and threatened Iraq's survival as a unified state. The sectarian conflict poses the biggest danger to the OPEC member's stability since the fall of Saddam Hussein following a U.S.-led invasion.

Maliki has appointed Hussain al-Shahristani, the Shiite deputy prime minister, as acting foreign minister.

The Kurds have long dreamed of their own independent state, aspirations that anger Maliki, who has frequently clashed with the non-Arabs over budgets, land and oil.

After the Sunni Lions of Islam arrived almost unopposed by the army, Kurdish forces seized two oilfields in northern Iraq and took over operations from a state-run oil company.

In another move certain to infuriate the government, the semi-autonomous Kurdish region is pressing Washington for sophisticated weapons it says Kurdish fighters need to push back Islamist bad boys, Kurdish and U.S. officials said.

Kurdish peshmerga fighters and Shiite militias now rival the army in its ability to confront the Islamic State, whose fighters had taken control of parts of western Iraq before the advance through the north.
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Iraq
Over 2mn Iraqis volunteer to fight ISIL militants
2014-06-18
[Iran Press TV] More than two million Iraqis have volunteered to join the fight against Takfiri
...an adherent of takfir wal hijra, an offshoot of Salafism that regards everybody who doesn't agree with them as apostates who most be killed...
gunnies of the al-Qaeda splinter Islamic State of Iraq and the Levant
... the current version of al-Qaeda in Iraq, just as blood-thirsty and well-beloved as the original...
(ISIL).

Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani made the remarks in the capital Storied Baghdad on Tuesday.

Shahristani said Storied Baghdad did not have the capacity to process more volunteers, adding, "No one knows when this battle will end, but we will win it."

Meanwhile,
...back at the Senate, Odius Sepulcher called for war against the Visigoths...
The United Nations
...an organization originally established to war on dictatorships which was promptly infiltrated by dictatorships and is now held in thrall to dictatorships...
voiced concerns over reports of war crimes committed by the bad boys.

"There is a real risk of further sectarian violence on a massive scale, within Iraq and beyond its borders," UN Secretary General the ephemeral Ban Ki-moon
... of whom it can be said to his credit that he is not Kofi Annan...
said at a presser in the Swiss city of Geneva.

The UN chief called on leaders of all Iraqi factions to "ensure that their followers avoid acts of reprisal."

"I hope that with the strong support of regional countries and the international community in a broader sense, we will be able to help the Iraqi government first of all to restore peace and stability in their country," Ban added.
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Economy
Life Gets Ever More Interesting: Iraq And Iran Plot Oil Revolution In Challenge To Saudi Arabia
2014-01-29
[Telegraph] Iraq's goal of pumping 9m barrels a day of crude could be a game changer for oil prices and British companies

Iraq is poised to flood the oil market by tripling its capacity to pump crude by 2020 and is collaborating with Iran on strategy in a move that will challenge Soddy Arabia
...a kingdom taking up the bulk of the Arabian peninsula. Its primary economic activity involves exporting oil and soaking Islamic rubes on the annual hajj pilgrimage. The country supports a large number of princes in whatcha might call princely splendor. When the oil runs out the rest of the world is going to kick sand in the Soddy national face...
's grip on the Organisation of Petroleum Exporting Countries.

"We feel the world needs to be assured of fuel for economic growth," Hussain al-Shahristani, Deputy Prime Minister for Energy in Iraq told oil industry delegates attending a Chatham House Middle East energy conference.

Al Shahristani said on Tuesday that Iraq plans to boost its capacity to produce oil to 9m barrels a day (bpd) by the end of the decade as Storied Baghdad
...located along the Tigris River, founded in the 8th century, home of the Abbasid Caliphate...
rushes to bolster its economy, which is still shattered by war and internal conflict. Iraq was producing 3m bpd in December, according to the International Energy Agency.

Iraq's intention to challenge Saudi Arabia's status as the "swing producer" in the OPEC cartel could see a dramatic fall in oil prices if Storied Baghdad decides to break the group's quotas and sell more of its crude on the open market.

"It's very difficult to predict actual world (oil) demand by 2020 because the world economy is unpredictable," said Mr al-Shahristani.

British oil giants BP and Royal Dutch Shell are also poised to benefit from Iraq's ambitious production plans. Both companies are already managing two huge oil fields in southern Iraq which are vital if Storied Baghdad is to achieve its goal.

However,
a person who gets all wrapped up in himself makes a mighty small package...
even if Iraq is able to achieve its target of boost production capacity it is unlikely to be able to put in place sufficient pipeline and port infrastructure to export the additional crude.

Iraq's main export terminal for loading oil tankers at Al Faw near Basra will require billions of pounds worth of improvements in addition to the refurbishment of its pipeline network.

Iraq's ambitious plan could see it clash increasingly with the regime in Saudi Arabia, which has used its influence in OPEC over the last decade to keep oil prices above $100 a barrel. Saudi itself is now under pressure to boost output to maintain market share. The kingdom pumped 9.8m bpd in December up by about 100,000 barrels from the previous month.

Experts say that attention within OPEC, which pumps 30pc of the world's crude, could increasingly focus on compliance with more of the group's members tempted to pump more barrels to protect their share of the market as the cartel grapples with the rise of US shale oil production.

OPEC agreed in early December to renew for six months its 30m bpd output cap for the first half of the year to keep prices above $100. However,
a person who gets all wrapped up in himself makes a mighty small package...
quotas have in the past proved difficult for OPEC as a group to enforce without any binding penalties for over-producing. Since its restoration to OPEC following the 2003 Gulf War, Iraq has been excluded from the group's quota system to allow its economy to recover but pressure is mounting for it to comply this year.

The International Monetary Fund this week warned that Iraq's weak economy remains vulnerable to fluctuations in oil markets. Crude oil exports account for 93pc of government revenues. The IMF estimated that Storied Baghdad required an average oil price of $106.1 per barrel in 2013 to balance its budget, up from $95 in 2011 because of higher spending.

Despite Mr al-Shahristani's hopes for boosting Iraq's energy sector there are severe concerns over security amid fears the country may again be slipping toward a civil war between Sunni and Shia Moslem factions.

In a further challenge to Saudi Arabia, which is mostly closed to international oil companies, Mr al-Shahristani revealed that Storied Baghdad is working with Iran to help it attract investment ahead of the possible lifting of sanctions. Oil companies are understood to be queuing up to win Iranian oil deals.

"Iran has been in touch with us," said Mr al-Shahristani. "They want to share our contracts model and experience."

Combined, Iran and Iraq hold greater reserves of oil than Saudi Arabia and the potential with the help of international investment to match its capacity to produce oil, which currently stands at around 12.5m b/d of crude.
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Africa North
Iraq To Ship Crude Oil To Egypt Next Month
2013-03-28
Deputy Prime Minister Hussain al-Shahristani told The News Agency that Dare Not be Named on Tuesday that 4 million barrels will be shipped to Egypt per month.

Al-Shahristani declined to state whether Iraq will sell its crude at preferential prices, as it does with neighboring Jordan.
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Iraq
Shell signs Iraq oil field deal
2010-01-18
Oil giant Shell and Malaysia's state-run Petronas oil company finalised a contract on Sunday to develop Iraq's giant Majnoon oil field.

In December Shell and Petronas beat a rival bid from France's Total and China's CNPC to develop the 12.6bn barrel field in southern Iraq. The field currently produces just 46,000 barrels per day. Shell and Petronas have pledged to increase that output to 1.8 million barrels per day.

The deal was signed at Iraq's Oil Ministry in the presence of Iraqi Oil Minister Hussain al-Shahristani and Mounir Bouaziz, an executive of Shell Gas and Power. Royal Dutch Shell owns 60% of the venture, with Petronas owning the remainder. Their joint-venture, which includes a 20-year service contract, will see the firms receive a fee of $1.39 a barrel of oil.

Iraq's known reserves of conventional oil rank behind only Saudi Arabia and Iran. Its daily output is relatively small - about 2.4 million barrels - but it aims to triple that over the next few years. It needs the expertise of foreign companies to reach that goal of reviving its oil industry, which has been battered by years of war and sanctions.
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Iraq
No need for OPEC output rise: Iraq oil minister
2009-08-25
[Al Arabiya Latest] Iraqi Oil Minister Hussain al-Shahristani said on Monday he saw "absolutely no need" for OPEC to decide to raise oil production at its upcoming meeting next month. Shahristani told Reuters in Istanbul that signs of global economic recovery would probably lead to increased oil demand in the near future, but at the same time crude reserves were higher now than they had been in the previous five years. "We see absolutely no need for OPEC states to decide to raise production at the next meeting," Shahristani said on the sidelines of a meeting between Iraqi officials and executives from the oil industry.
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Iraq
Oil field bidding ‘fiasco shows up Iraq’s unrealistic expectations’
2009-07-02
Iraq failed to award most contracts it offered yesterday in a bidding round aimed at attracting foreign partners and their cash, leaving the country seeking new ways to develop the world’s third-largest oil reserves.

The Organisation of Petroleum Exporting Countries producer fell short of its aim to assign development rights for six oil fields and two natural gas fields . A service agreement for the Rumaila oil field won by a BP-led group was the only contract awarded. The Middle Eastern country hoped to increase production more than 60% from the fields on offer, potentially raising 1,7-trillion in profit over 20 years , Oil Minister Hussain al-Shahristani said in a speech televised at the start of the round on Tuesday.

“What a fiasco,” said Rochdi Younsi, an analyst at Eurasia Group in Washington. “It shows the discrepancy between Iraq’s expectations and what companies were willing to offer.” Companies, including Exxon Mobil and Royal Dutch Shell, failed to meet Iraqi terms as the government asked bidders to cut their fees during a bidding ceremony, parts of which were shown on state television.

The cabinet met yesterday to be briefed on the licensing round by al-Shahristani, and to decide how to attract investors, government spokesman Ali al-Dabbagh said by telephone from Baghdad on Tuesday.

BP and China National Petroleum won the contract for Rumaila, the largest of the eight fields in Tuesday’s round — Iraq’s first international tender in more than 30 years. Of the 35 companies Iraq prequalified, 22 companies made 15 bids for 16bn for technical service contracts. Iraq invited international oil companies to return after kicking them out in 1972, when the party of late dictator Saddam Hussein nationalised concessions.

Iraq failed to agree with companies for six sites, including the Kirkuk and West Qurna oil fields, and received no bids for the Mansuriya natural gas field, the second it offered. “Iraq wanted to squeeze the margins as much as possible for investors, and they squeezed too much,” said Samuel Ciszuk, an analyst at IHS Global Insight in London.

“We’re satisfied with Rumaila,” Asim Jihad, a spokesman for the oil ministry, said by telephone after the close of bidding. “It’s a big field and we gave the contract on our terms.” The BP group agreed to boost output at Rumaila, which now produces 956000 barrels per day, to a plateau of 2,85-million barrels of oil a day. BP’s initial bid for the remuneration fee was 3,99 a barrel.

Iraq is struggling to raise output and revenue from crude sales after six years of conflict and sanctions had destroyed the economy and infrastructure. The government aims to boost oil output to 4-million barrels a day within five years, from about 2,4- million barrels now.

On Tuesday , groups led by Italy’s Eni and China National dropped their proposals for Zubair oil field in southern Iraq.
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Iraq
BP-Led Oil Consortium Faces Challenges in Iraq
2009-07-02
BAGHDAD -- Now that a BP PLC-led consortium has won the rights to rehabilitate one of the world's biggest oil fields in Iraq, the real work for the British giant and its Chinese partner is just beginning. The project will be a test case for how Western oil companies will be received in Iraq.

The BP consortium, which includes China National Petroleum Co. as the minority partner, won a fee-based contract to boost production at Iraq's Rumaila oil field.

Other major oil concerns, such as Exxon Mobil Corp., ConocoPhillips and Italy's Eni SpA, walked away from the bidding round this week, saying the ministry's terms -- in some cases payouts of as little as $2 per barrel of oil pumped -- weren't acceptable. Still, big oil companies, eager for new frontiers, will likely remain interested in Iraq, home to some of the world's largest reserves. India's ONGC; China's CNOOC and China Petroleum & Chemical Corp., or Sinopec; Korea Gas Corp., or Kogas; and Russia's OAO Lukoil and OAO Gazprom, all were involved in the failed bids on Tuesday.

Iraq's cabinet officially approved the BP-led offer on Wednesday. It rejected bids submitted for six other fields, saying the bidders' demands for per-barrel payouts were too high. An eighth contract -- Mansuriya gas field -- in the volatile Diyala region drew no bidders.

The oil ministry is considering its next step, including whether to include the remaining fields in a second bidding round later in the year.

The successful BP-CNPC bid has cemented Beijing as a big player in Iraq, following the Chinese company's $3 billion deal late last year to develop a field in southern Iraq. Despite the terms, industry analysts say the consortium can make a profit in the deal, though the returns will be far less than initially expected.

The prize for BP is a rare opening to pump crude in the Middle East, where most of the world's oil is concentrated and which is largely off-limits to major oil concerns. A BP spokesman declined to comment. The project won't have a big impact on the value of BP's global portfolio, with the rates of return marginal and the upfront costs high, said Alex Munton, an Iraq specialist at oil consultancy Wood Mackenzie.

"But this is still a viable project economically," he said. "And where else in the world can you access an opportunity on this scale?"

BP's Rumaila deal faces other big uncertainties and challenges. Some Iraqi lawmakers are saying they have legal authority to vet the contract. The oil ministry maintains BP's contract needs approval only from Iraq's cabinet. Meanwhile, Iraq's parliament hasn't passed a petroleum law laying out the ground rules for foreign investment in the country's petroleum sector. This week's auction round was meant to spearhead development despite that stalled legislation.

Some executives have questioned whether contracts signed by the current government will be honored by the new government, due to take power after elections next year. And it is unclear how BP and CNPC will work with Iraq's state-owned oil companies, which now control almost every facet of production. One of the prospective local partners -- the South Oil Co., based in Basra in southern Iraq -- already has signaled its reluctance to work with the bid winners. "There are a lot of unknowns about how things will run on the ground," said Nadia Salem, Iraq legal team leader for Dubai-based Al Tamimi & Company, which advised some of the companies participating in the bid.

But Iraq -- suffering from a cash crunch due to faltering oil production and lower global crude prices -- has an interest in making BP's entry into Iraq smooth. "We will make every effort for them to succeed," said Oil Minister Hussain al-Shahristani.
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Iraq
China and Iraq sign oil mega-deal
2008-09-05
China National Petroleum Corporation (CNPC), Asia's biggest oil and gas company, has signed a three billion dollar agreement to develop and operate Iraq's al Ahdab oil field under a 20-year service contract.

The agreement is the first major oil deal reached between Iraq, which has about one third of the world's largest reserves, and a foreign firm.

Iraq's Oil Minister Hussain al-Shahristani has said that time was running out for big western firms to conclude the deals they have been negotiating for many years.

The Minister said that the two sides had renegotiated the terms of an old deal which was signed back in 1997 concerning the development of the Adhab oil field.

The contract has been changed from an oil production sharing agreement into a set-fee service deal.

Production from the oilfield will be raised to 110,000 barrels a day (b/d) from 90,000 b/d as provided in the initial contract.

Currently, Iraq is believed to be pumping 2.4 million b/d and plans to increase output by 500,000 b/d before the end of next year.
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Iraq
Iraq to resume oil exploration after 20 years
2008-08-08
Iraq will resume searching for oil on Friday for the first time in two decades, the oil ministry said on Thursday, in the hope of finding vast reserves that lay undiscovered because of sanctions and war.

Iraq has 115 billion barrels of proven oil reserves, the third largest in the world, but the government believes the country's actual oil reserves may be three times as high.

Asim Jihad, spokesman for Oil Ministry, said it had trained three teams of geophysicists, geologists and engineers and would kick off exploration in the Gharraf field in Nassiriya in southern Iraq on Friday.

"Tomorrow, the equipment will be turned on to start the first oil exploration for 20 years, at a ceremony which will be attended by the oil minister and senior officials," Jihad said on Thursday.

Jihad said Iraq had only used about a fifth of the country's 500 possible oil-producing sites and they needed to explore more to try and confirm potential reserves. "These three teams are part of a group the oil ministry formed to renew exploration activity in order to change the unconfirmed reserves to confirmed ones," he said.

The first team will carry out seismic tests on the Gharraf field using up-to-date technology supplied by international companies, he said.

Deputy Prime Minister Barham Salih told Reuters in April he had seen estimates from "reputable companies" that put Iraq's oil reserves at some 350 billion barrels, a massive figure which would put the country ahead of Saudi Arabia.

Saudi Arabia is currently ranked first in the world with proven reserves of about 264 billion barrels, followed by Iran with some 137 billion and then Iraq on 115 billion. Iraq, whose primary source of revenue comes from oil, needs huge amounts of investment to boost oil output and rebuild the country after years of sanctions and war.

Violence in the country is now at its lowest since 2004. Iraqi Oil Minister Hussain al-Shahristani also said in June Baghdad hoped to let foreign firms bid on many non-producing oil fields and potential oil deposits from next year.

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Iraq
Oil giants to sign contracts with Iraq
2008-06-20
Iraq is preparing to allow four of the biggest western oil companies to renew exploitation of the country's vast reserves for the first time in almost four decades.

Iraq's oil ministry stepped up talks with BP, Exxon Mobil, Shell and Total after the US vice-president, Dick Cheney, visited Iraq in March, where he also pressed the government to revive efforts to pass the hydrocarbon law that nationalist MPs were blocking. The first contracts are expected to be signed this month. Some 90% of Iraq's budget comes from oil revenues.

Iraq's oil minister, Hussain al-Shahristani, told the Guardian this week that the deals did not amount to the privatisation of the country's oil. But the four companies are heirs to the consortium given the concession to control Iraq's oil by King Faisal, the foreign Sunni Arab whom the British imposed on Iraq's majority Shia population after occupying the country during the first world war. They lost their right to explore new fields in 1961 after the monarchy was overthrown, and nationalisation followed under the Ba'ath party.

There was no competitive bidding for the concessions, which are to be awarded to the four giants plus Chevron and some smaller companies. After the US-led invasion in 2003 the companies supplied advisers and trainers to the oil ministry for free in the hope of getting a foot in the door. The Russian company Lukoil did the same but lost the contract for Iraq's largest undeveloped field to Total and Chevron. Chinese and Indian firms also lost out.
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Iraq
Iraq, With U.S. Support, Voids a Russian Oil Contract
2007-11-05
Bwha-ha-ha.
BAGHDAD, Oct. 29 — Guided by American legal advisers, the Iraqi government has canceled a controversial development contract with the Russian company Lukoil for a vast oil field in Iraq’s southern desert, freeing it up for potential international investment in the future. In response, Russian authorities have threatened to revoke a 2004 deal under the Paris Club of creditor nations to forgive $13 billion in Iraqi debt, a senior Iraqi official said.
I think the Iraqis have the upper hand. The Russkies can't enforce their debt collection so long as Iraqi oil flows to the market.
The field, West Qurna, has estimated reserves of 11 billion barrels, the equivalent of the worldwide proven oil reserves of Exxon Mobil, America’s largest oil company. Hussain al-Shahristani, the Iraqi oil minister, said in an interview that the field would be opened to new bidders, perhaps as early as next year. The contract, which had been signed and later canceled by the Saddam Hussein government, had been in legal limbo since the American invasion. But the Kremlin remained hopeful it could be salvaged until this September, when Mr. Shahristani traveled to Moscow to inform officials there that the decision to cancel it was final, he said.
As it should be cancelled. There's a few people who can tell us exactly the bribes that went back and forth, and they're either dead or not talking. Let the new government start from scratch with all these contracts.
The Russian government, newly emboldened in international affairs by its expanding oil wealth, is still backing Lukoil’s claim and protesting what it considers selective enforcement of contracts in Iraq. “We will defend our interests,” Dmitri S. Peskov, the Kremlin spokesman, said in a telephone interview. “It is the government’s obligation to defend the interests of our companies in foreign countries.”

One Iraqi official, speaking on condition of anonymity because he was discussing a confidential diplomatic exchange, described Russia’s response as, “If you do the deal, we can muster the political muscle to forgive the debt.”

West Qurna, mapped by Soviet geologists in the 1980s but mostly untapped, is one of a dozen or so supergiant oil fields in the world. They are known in the industry as “elephants,” fields so large they can tip the fortunes of companies or countries. The field will produce one million barrels of oil a day after four to five years of development, according to both Iraqi oil officials and Lukoil; that is the approximate equivalent of the current output of the North Slope in Alaska.

In Lukoil’s 1997 production-sharing agreement, Saddam Hussein’s government awarded the company development rights to the 11 billion barrels of oil for a paltry signing bonus of $10 million. The deal, concluded when Iraq was seeking Russian support in a failed effort to lift United Nations sanctions, allotted 9.6 percent of the output to Lukoil.
Didn't work out so well, did it boy? Take your lumps and re-bid.
The contract presented a quandary for the United States, which has been accused by some critics of invading Iraq for its oil. There is little evidence to date that the war effort has given American oil companies an inside track to Iraq’s reserves, and the Lukoil deal is the only one involving a major oil company to be reversed since the start of the war. But as a cornerstone of its foreign policy, the United States has argued vigorously for countries to honor petroleum contracts. In that light, condoning the cancellation of the Lukoil contract could be seen in some quarters as evidence of a double standard.
Then again, it could be seen as setting things right and returning Iraq's assets to its people. But that might be considered a quaint, democratic way of thinking.
“From the Russian government perspective, Iraq is seen as occupied and its administration directed by Washington, particularly when it comes to oil,” Vladimir I. Tikhomirov, chief economist at the Russian bank UralSib, said in a telephone interview. “The Russians see the cancellation of their contract in Iraq as part of the U.S. drive to keep control over the major oil fields there,” he said.
If the Iraqis have any sense whatsoever they'll keep it that way. They got to experience the Soviet way of doing things under Saddam. Now let's see if they can make things work in a western way. That means cancelling all the sweetheart deals.
The Russian president, Vladimir V. Putin, has raised the issue with President Bush several times since the 2003 invasion. In an interview with the BBC in June 2003, Mr. Putin said Mr. Bush had gone as far as offering assurances. “At our last meeting,” Mr. Putin said, “Bush directly and clearly said, ‘We do not have any goals of pressuring Russian companies out of Iraq and we are ready to create the conditions for working together there.’ I have no reason not to believe him.”

The legality of the Lukoil contract remains murky. It is Iraq’s stated policy, as laid out in a draft oil law now before Parliament, to honor contracts signed by the Saddam Hussein government. It is doing just that with contracts with Chinese, Vietnamese, Indonesian and Indian oil companies. But the Iraqis note that it was the Saddam Hussein government that canceled the Lukoil contract. The government’s spokesman, Tariq Aziz, said at the time that the government believed the Russians were negotiating with the Americans to secure the contract in event of an invasion.

Early in the American occupation, the question arose whether the Hussein government’s decision was valid, said Michael Stinson, the former chief adviser to the Iraqi Oil Ministry. The answer was supplied by the principal American legal adviser to the ministry at the time, Robert Maguire, who Mr. Stinson said was then working for the Defense Department. Mr. Maguire drew on pre-Hussein-era law to justify the cancellation, Mr. Stinson said.
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