Iraq's VP Hashemi to boycott oil tenders

[sabra]

Source: Guardian UK/Reuters

BAGHDAD, June 29 (Reuters) - Iraqi Vice President Tareq al-Hashemi will boycott an auction on Tuesday to award contracts for eight oil and gas fields, saying parliament needs more time to study the country's first major oil tender since 2003.

Some of the world's biggest energy firms, including Exxon Mobil, Total and Royal Dutch Shell, are competing to develop the six oilfields and two gas fields in the tender, which has drawn opposition from some legislators.
"There are many existing reservations over this vital issue concerning Iraq's oil resources," Hashemi said in a letter, posted on his website, to Oil Minister Hussain al-Shahristani.

He urged the minister to "hold off on awarding bids to the winning companies and give parliament enough time to study these bids," said the letter, released by Hashemi's office.

Iraq has the world's third largest proven oil reserves, estimated at 115 billion barrels, and Tuesday's tenders will unveil the war-battered nation's first major oil round since the U.S. sent troops six years ago to topple Saddam Hussein.

Read more: http://www.guardian.co.uk/business/feedarticle/8582543

[DLnyc]

1. This article doesn't give much detail about the contracts, but

I found another article that claims that the

"Contracts will be fee-based rather than the industry’s preferred revenue-sharing model. "
http://business.timesonline.co.uk/tol/business/article4748541.ece (last paragraph)

If true, this means the Iraqis are actually holding out against the attempted theft of their resources. Good news, I think.