Tuesday, May 30, 2017
Top Entrepreneur News

Tue, 30 May 2017 12:00:00 -0500

The right coach is invaluable. The wrong coach is a waste of time who charges you by the hour.

Tue, 30 May 2017 11:30:00 -0500

You might think you can't afford to step away from your business. The truth is, you can't afford not to.

Tue, 30 May 2017 11:00:00 -0500

Helping improve your community or bolster a cause you believe in is probably the most satisfying way there is to market your business.

Mon, 29 May 2017 20:30:00 -0500

Barry Meguiar, Meguiar's president and 'Car Crazy Central' TV star, breaks down his four-step secret to building brand loyalty.

Mon, 29 May 2017 20:00:00 -0500

Sales and marketing professionals are up against dwindling attention spans. But they've got new options to try, as well.

Mon, 29 May 2017 19:00:00 -0500

You could fix your company's problems simply by taking a closer look at what you're doing, and figuring out where it's lacking.

Mon, 29 May 2017 18:30:00 -0500

How a water softener company boosted sales with moves as simple as changing its ecommerce platform and hiring an AdWords advisor.

Mon, 29 May 2017 18:00:00 -0500

Worries that technology will make us irrelevant can blind us to the amazing possibilities at hand.

Mon, 29 May 2017 17:00:00 -0500

Business Intelligence, the analysis of data that companies create simply by doing business, can drive greater profitability.

Mon, 29 May 2017 16:00:00 -0500

If you want to populate on the first page of Google, patience is a virtue.

Mon, 29 May 2017 15:00:00 -0500

For entrepreneurs, taking a tour of America's backbone industries can be interesting and inspiring.

Mon, 29 May 2017 14:30:00 -0500

The single most important thing to measure for every blog post you publish? How engaging it is to your audience.

Mon, 29 May 2017 14:00:00 -0500

Serving our country long after the military.

Mon, 29 May 2017 14:00:00 -0500

Relieve yourself of the stress and worry of financial problems using these tips.

Mon, 29 May 2017 12:30:00 -0500

If you're tired of the corporate world, then there's only one way to fix it.

Latest News & Information

Current Articles | Archives | Search

American Iraqi Business Group Reveals Successful Iraqi Oil Bids Awarded
By David Najor :: Tuesday, October 13, 2009 :: 20947 Views :: Article Rating :: Business & Finance

Baghdad, IRAQ — Efforts by Western and Iraqi business leaders help secure a new chapter in Iraqi’s economic stability and growth.  A major breakthrough for Iraq’s oil industry is made after three international oil consortiums accept Iraq’s terms to develop two oil fields. 

American Iraqi Business Group (AIBG) chairman, Sam Yono shares that recent developments have changed; more companies have agreed to meet Iraq’s price requirements for oil.   

Yono leads the largest consortium of independent Western businesses seeking to conduct business in Iraq.  AIBG offers education and assistance to Iraqi and Western corporations on securing bids from Iraq and better understanding business opportunities.  The business group helps to form collaboration, consortiums, and build synergies to meet the needs of the reemerging Iraqi market. 

After a successful endeavor of a winning bid for BP-China’s CNPC consortium which bid $2 per barrel produced to develop the 17.8 billion barrel Rumaila field with a targeted production of 2.85 million barrels per day, up from its current nearly one million barrels a day, more oil consortium’s sought to bid more competitively. 

AIBG reports that they can now share that, that a total of three other consortiums also were awarded.  One led by Exxon Mobil and Royal Dutch Shell, another by ConocoPhilips, and a third by Russia’s Lukoil. 

The consortiums have agreed to develop the 8.6 billion barrel West Qurna Stage 1 oil field for $1.9 per barrel.   The consortium led by Italy’s Eni has agreed to develop the country’s 4.1 billion barrel Zubair oil field for $2 per barrel produced based on a target production level of 1.125 million barrels per day.

Minister Hussain al-Shahristani says, “I’m proud with this success.  We do believe that it is a big leap in developing Iraqi oil fields.”

AIBG reports that the price requested by the failing companies was two to ten times higher than what the oil ministry was willing to pay. 

AIBG reveals that Eni had previously bid $4.8 per barrel to develop the field, while the Lukoil consortium submitted an earlier bid of $6.49 per barrel and the Exxon Mobil-led consortium was asking for $4 per barrel.

Iraq’s minister Al-Shahristani said that the three fields’ combined output would exceed 6 million barrels a day in six years with a total direct investment from these firms expected to be about $100 billion. 

AIBG reports that the two deals could be signed within the coming two weeks.

AIBG points out that Iraq will find stability when the Iraqi population feels there is both social and economic justice, and that there are economic opportunities in Iraq.  The country needs jobs, daily tasks, and a way to care for their family rather than criminal gangs or insurgent recruitment say AIBG researchers. 

Iraq sits on the world’s third-largest oil reserve, with at least 115 billion barrels, the country is producing and exporting far below its potential because of decades of war, lack of investment, U.N. sanctions, a brain drain and insurgent attacks.

Its daily production ranges between 2.3 to 2.4 million barrels a day and exports slightly over 2 million barrels a day.

The country hopes to add 300,000 to 500,000 barrels per day by the end of 2010 through an emergency plan started early this year to drill new wells and install production surface plants in a number of its oil fields in southern Iraq.

The overall fall of oil prices since last year has forced the government to slash spending plans for this year from $79 billion to $58.6 billion. The oil sector represents about 65 percent of gross domestic product and its revenues account for 95 percent of Iraq’s earnings.