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U.S. envoy to Baghdad expresses Iraqi oil interest

Both the ministry and Ambassador Silliman said they were eager to cooperate "especially in the oil and gas" sector.

By Daniel J. Graeber
U.S. Ambassador to Iraq Douglas Silliman said U.S. companies are eager to work in the Iraqi oil and gas sector. File photo courtesy of the U.S. Embassy in Baghdad
U.S. Ambassador to Iraq Douglas Silliman said U.S. companies are eager to work in the Iraqi oil and gas sector. File photo courtesy of the U.S. Embassy in Baghdad

Jan. 4 (UPI) -- U.S. companies are committed to building their bilateral relationship in Iraq, especially in the oil and gas sector, the U.S. ambassador told Iraq's oil minister.

U.S. Ambassador Douglas Silliman led a delegation to Baghdad to meet with Iraqi Oil Minister Jabbar al-Luaibi to discuss bilateral cooperation in the Iraqi enegy sector. Both men were quoted Thursday by the oil ministry as saying they were keen on strengthening ties "especially in the oil and gas industry sector."

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According to the Iraqi government, the oil minister invited U.S. companies to bid for any investment opportunities offered by Baghdad.

U.S. supermajor Chevron operates at the Sarta and Qara Dagh blocks in the northern semiautonomous Kurdish region of Iraq, covering about 279,000 acres in what's considered complex geology. Most operations are still in the exploration phase.

Exxon Mobil has an agreement with Iraqi state oil companies and Royal Dutch Shell to develop the West Qurna oil field in southern Iraq. Production there reached a milestone more than five years ago at close to 300,000 barrels per day.

Iraq is one of the top producers in the Organization of Petroleum Exporting Countries, churning out around 4.4 million barrels of oil per day. The ministry in November said the southern port at Basra recently sent out an average of 3.9 million barrels per day, the highest capacity ever reached there. December exports averaged around 3.5 million barrels per day.

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In terms of foreign relations, Luaibi in October said he was frustrated with announcements of intent to sign oil contracts inside the "geographic borders of Iraq without telling the federal government of the ministry of oil." A statement carried by his ministry said such action was considered blatant interference in its internal affairs and an insult to Iraqi sovereignty.

The announcement came one day after Russian oil company Rosneft said it signed an agreement with the semiautonomous Kurdistan Regional Government that put a production sharing agreement in motion for five production areas in Kurdish territory.

Iraqi military forces operating in the northern restive provinces seized control over the oil fields in Kirkuk in October cutting off a revenue lifeline for the KRG.

For the south, London-listed oil and gas services company Petrofac in December secured a $160 million contract for an expansion project at a terminal about 40 miles off the southern coast that's responsible for nearly all of what Iraq exports.

The U.S. embassy had no statement on the meeting with Iraq's oil minister.

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