After a massive build up, the live broadcast proved a big letdown. Iraq offered six oil fields and two gas fields to international energy companies last week, but only one offer was taken up.There were gasps from the conference floor when delegates saw the gap between what the government was offering and what the bidders wanted. The faces gathered around beneath a giant stage erected for the day's proceedings told the story; it had been a disappointment.
Iraq needs money. The country's public services are a shell of their former selves. It is often said that Iraq had one of the best, if not the best- educated populations in the Middle East in the 1970s. But that was the 1970s.
Three wars and 18 years of sanctions put paid to a strong education service. Ahead of Tuesday's energy auction, Oil Minister Hussein al-Shahristani said the "huge amount" of money raised would "finance infrastructure projects across Iraq -- schools, roads, airports, housing, hospitals." That was his pitch.
Barely 24 hours after the event he went on national television and denied the auction had been a failure. Oil production will increase, meaning more money as planned, as a result of the successful British-Chinese bid for the biggest oil field on offer, assuming of course that complex contract terms are agreed in the coming months.
But Shahristani's "It's our oil" tone could not have been clearer, as he told the local audience that the foreign companies would end up getting less than one dollar per barrel produced under the deal. Mr Shahristani was clearly trying to appease his fellow Iraqis, mindful that he could be accused of conducting a sell-out.
His comments have not been lost on the international business and diplomatic community in Baghdad. "He might have been talking to Iraqis, but we heard him too," one such individual said.
In this blog, reporters and editors for global news wire AFP blog about the news they report and the challenges they face covering events from Baghdad to Beijing, the White House to Darfur. Arthur Macmillan reports for AFP from Baghdad.Editor's Corner
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kenneth: Put the camels in your ass,,Iraq doesn't have camels, the have donkeys like you
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Good luck to the iraqies they are going to need as much revenue as they can get their hands on ! Yes ofcourse its their oil and lets face it that was the main reason the west interfered in iraqs affairs "they are now wishing they hadnt" the sooner the yanks and all westearn forces are out of iraq the better, the west should never have got involved in iraq in the first place. Sadly iraq will never be at peace there will always be waring factions in iraq its never going to be a safe place for westearn oil workers. Investors would be wise to stay clear. Iraq as a huge job in rebuilding itself after this wastefull war, theres been a huge waste of lives and a vast amount of cash wasted only to remove saddam and try to regain control over its oil investors got "second prize" i think. investors stay clear of the place i say, let the iraqies run their own affairs its their country.
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Once upon a time, not so long ago, the UK was self sufficient in its energy needs. Industry, rail and sea transport and home heating were all powered by stuff that came out of the ground. Good old coal.
We had so much of the stuff, we even exported billions of tons of the stuff to India to keep their railways running, too.
Oil has since become like a drug to the West, it wont last and green alternatives arent worth a xxxx.
The future is coal and nuclear (unless you want to return to a pre-industrial economy.)
And we have plenty of both. This is a perfect time to say goodbye to our addiction to oil. If the Arabs have return to goat herding and camel dealing, so be it. They lived in land of sand and ancient ruins before and were never happy living in the modern world, so let them return to the barbaric distant past, where they probably belong.
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They have the oil but we for the most part have the tech. Iraq and Iran are for the most part are like the West gone wrong. Solution: Do a deal, educate local people how to exploit their resources and let them provide what the west wants for a fair price and hope they use the money for the good of their people.
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Pointing out the obvious, Oil is what kick started this Iraq issue when Kuwait was invaded. IMHO Iraq should pay up to Kuwait for all the billions of barrels of oil that "ITs" former dictator had destroyed and also more on top for the billions of dollars in clean up and capping of wells.
Iraq has a bloody cheek to turn around and say "Its our Oil" when we live in a global "Village" for want of a better term. Who's oil is it? It belongs to everyone, it just happens that they have been able to tap in to a reserver that possibly spreads over large parts of the middle east.
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gfcd#W%#&%&/west YGCY456/&&%%&$oil%&&/%/6 ##$$%blair &%$R$#Kebabs and french fries. Beca%$#% ketchup an# eggs.
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What oil? Those people never even knew the mention of the word until WE tought them and show them how to extract it (for us of course)...They are not very grateful now, are they?!
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flycrank (and everybody else), you're forgetting that oil is also necessary to make plastics, cleaning products, lubricants etc... We live in a "hydrocarbon economy" which means that oil is pretty much essential to make it work regardless of the energy issue. Bit worrying really.
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When the master returns home, the thief runs out the back. But what it the thief had been making a contribution to the masters family albeit taking some proceeds in the process. What if the master had been out spending family money without consideration for his family. Whos right here, master or thief.Master says thief is thief, thief says master is thief. Who is thief?
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...you are thief
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