Also in this playlist...
This transcript is automatically generated
So much -- Iraq and China are poised to breed new life into an eleven year old oil contract worth one point two billion dollars.
It is the first time -- Saddam -- contract is being revised.
In a post Saddam world but it's not the only deal Iraq is working on.
-- been talking with major international oil companies about six short term contracts.
He talked about what this new oil will mean to the world market is fox is contributor.
Still plan on my other side the other Fox Business contributor mr.
Charles -- founder W thestreet.com.
Our guys I'm still get started with you first of all just activity the fifth straight cold hard facts here.
How much oil is there available in Iraq and how difficult is it to get out of the ground.
It's a lot less difficult than it was a few years ago obviously I mean I Iraqi oil production is at the highest level since the invasion.
In to be honest with you they could produce a lot more if they could get some foreign investment in that country.
That's gonna start to happen and I think we're gonna see Iraqi oil production.
Increase in the coming years and in -- have a lot of upward potential.
Yeah I mean what is the potential -- Ian and beauty in percentage terms here what are we talking -- -- -- this.
This this pipeline we're talking that here that they had originally had this deal with with China I think as saying at the maximum is 90000 barrels per day.
It is you know they did with this particular deal this is more does he used to be -- production sharing agreement with China.
When Saddam -- -- -- can't right now this is just a service contract so it's not that big of a deal.
For China but what's critical about that is -- were taken the first step to getting foreign countries back into that country.
The potential for Iraqi oil it is is some enormous I mean it would a lot of people.
The Iraqi Government projects with the right type of investment they could be producing close to six point five million barrels a day.
And that could be conservative estimate -- if if they allow in foreign investors I mean they already one of the major oil producers in the world.
Our -- let's talk about some of the oil companies that Iraq is trying to do these six short term contracts with because these are not revenue sharing models these are.
Models were in essence they're helping them explore and get it out but it's not the best of options for these oil companies for perhaps opened the final for something the future right.
Yet when they started earlier this year -- -- back I think in today's have to it is an article about this how potent political infighting and then disagreements within the cabinet -- puts a sought to should've been an agreement on them -- and actually 7 am five long term oil bills into gas fields.
And you know what's a little frustrating to Anadarko actually say you know what they dropped out of digits so frustrated with the whole bill -- win now expects an agreement or some sort of contracts to be announced after Ramadan so we're talking October right now.
In -- Alexis is a little frustrating listen we've lost 4100 Americans over -- since the war.
We've spent billions and billions of dollars last year they made about sixty billion dollars were still spending all this money on the infrastructure rebuilding.
And yet we're almost Americans almost at the back of the line when it comes to these contracts -- frustrating to see China did a deal before some of these American company.
Yet the first to sign off -- -- it is amazing and all these companies ExxonMobil shell to tell BP Chevron and some smaller all of companies.
Are all bidding on these contracts are guys that leave it there and went on.
Phil and -- think some.
Filter by section