Supply will surely rise with the Iraq auction of oil contracts.
During an auction of Iraq’s best undeveloped oil fields that concluded Saturday, Baghdad awarded international companies development rights to seven fields that within a few years could nearly double the country’s oil production.
It's very unclear who got what, but considering the billions the U.S. has poured into Iraq, one would think we would at least get the oil. We spend trillions in Iraq so China can develop the oil?
The corporations that won represented a diverse group of nations, including Angola, Malaysia, Turkey and China. They were vying for 20-year service contracts that will pay them a fee for each barrel they produce above a government-set baseline.
Despite what are expected to be slim profit margins for the companies, the auction’s biggest winners appeared to be Petronas, a state-owned Malaysian company that was part of three separate consortiums that won the rights to three fields; Sonangol, an Angolan company that will develop two fields; and Lukoil, the Russian oil company, which won the rights to part of the West Qurna field in southern Iraq, the most sought prize of the auction.
The Washington Post has more, including speculation on why U.S. companies did not win the bids and a map of some of the fields involved in this auction.