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Article: Iraq outsmarts Big Oil over contracts.
- Article from:
- UPI Energy Resources
- Article date:
- November 5, 2009
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The Iraqi government's hardball tactics with oil majors demanding a bigger slice of the profits from taking over the country's rundown oil fields are paying off.
Big Oil has caved in and is now meekly accepting the same 20-year deal the companies rejected at a June auction, the first such event in Iraq in nearly 40 years, because the prospect of Iraq's vast untapped reserves was just too good to miss.
The majors have shown a new willingness to drop their demand for payment of up to $4.80 for every barrel they produce on top of current production levels and accept the $2 offer that the government has stuck to since the June action fizzled.
The ...