Quoting from this this CBC report:
Over the top of what is happening right now in Iraq, I hope it does not become another Nigeria.The Iraqi government plans to introduce a law that will give Western oil companies rights to the country's huge oil reserves, a British newspaper says.
The government is drafting a law based on "production sharing agreements [PSAs]," which will allow major oil companies to sign deals of up to 30 years to extract Iraq's oil, the Independent on Sunday reported
2 comments:
Iraq does not have the means to explore for oil in its reserves, so western countries wiht the expertise are necessary, but it will be a security nightmare.
Ya Haqq!
That might be true Irving but if you look at iraq's immiadiate neighbors you will see that Iran and Saudia both have their oil indeustries owned by the state. Moreover it has been reported the level of corruption in Iraq is such that any Iraqi signing on the behalf of the whole country will most likely be doing it for personal benefit rathar than benefit of the state.
Thats why I say with the attacks on the oil industry already rampant, there is well founded fear that Iraq will be another Nigeria.
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