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Russian stake in Iraqi oil project in doubt
Lukoil, Russia's largest oil group by reserves, was informed this week, along with two minority partners in the project, that their contracts in the second phase of the West Qurna field had been terminated, a Lukoil company executive told Russian press agencies on Thursday.
Bad move, Sammy. That lets the Russers off the hook, and they can come back when you're decomposing and do business with the new gummint. Now they don't have any reason to bitch when somebody tries to kill you...
Energy Intelligence Group's "Eye on Iraq" on Wednesday first cited extracts of a letter from the Iraqi oil ministry sent on December 9 to Vagit Alekperov, head of Lukoil, saying that its contract was "null and void" because of a failure to fulfil the obligations to develop the field, which has recoverable reserves of 7.3bn barrels. The magazine interpreted the move as a sign of anger over statements by Mr Alekperov that Russia was pushing to protect its interests in the field in the event that Iraqi President Saddam Hussein was removed from power, and indications that he had held secret talks with Spencer Abraham, the US energy secretary.
That's very interesting. I didn't know that. I wonder if this ties in with the recent kidnappings of relatives of Russian oil company executives?
On September 12 the vice-president of LUKoil Sergei Kukura was kidnapped. A couple of weeks later he re-appeared, but the circumstances of his release remain a mystery. According to some sources, he was freed for a ransom that LUKoil paid; others said the executive’s release was the result of a special operation.

Earlier this week misfortune fell on the house of LUKoil's vice-president Vagit Sharifov when his father, Sadi, was kidnapped in Georgia. As the Georgian Interior Ministry told Gazeta.Ru, a group of gunmen broke into the Sharifov family house located in the village of Panpiani in the Dmanisi area of Georgia in the early hours of Tuesday morning.
Baghdad's move has puzzled some observers, as it will serve to alienate Russia, which has been one of Iraq's strongest supporters in the past in efforts to lift economic sanctions and to resist unilateral and military action by the US. It could result in reduced Russian pressure to protect the existing Iraqi administration, and even further enhance Lukoil's chances of winning a fresh contract should a new regime unfriendly to Mr Hussein take power.
Clueless in Baghdad. It's OK to say bad things about countries supporting the U.S., but another thing entirely when you take money out of their pockets. You just picked the Russian Bears pocket.
Posted by: Steve 2002-12-12
http://www.rantburg.com/poparticle.php?ID=8430