Shell puts Iraq project on hold

[Barrett808]

Shell puts Iraq project on hold
By Clay Harris and Joanna Chung
Published: May 4 2004 20:25 | Last Updated: May 4 2004 20:25

Royal Dutch/Shell has investigated the possibility of participating in an Iraqi oil project but decided not to proceed, at least for now, according to executives familiar with industry developments in the region.

The Anglo-Dutch group is understood to have bought a tender for work in the Khurmala field near Kirkuk this year. This gave it access to technical data about the field, which is believed to contain reserves of at least 1.5bn barrels.

Iraq has huge potential attractions for Shell, which is desperate to boost its proved reserves after having to cut them by more than 20 per cent this year in a series of embarrassing disclosures.

The initiative in Iraq was undertaken at the behest of Wolfgang Strobl, Shell's director for exploration and production activities relating to Iraq. Having bought the data from the Iraqi oil ministry, however, Shell decided not to proceed at this time.

Declining to comment on the specific project, Shell said: "We would welcome the opportunity to help Iraq build its energy industry once the security situation allows and once an internationally recognised Iraqi government is established."

(more)

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1083180271974

[ze_dscherman]

1. BP backed out last week as well

BP's chief executive delivered a serious setback to hopes of rebuilding Iraq when he said that the oil company has no future there.

John Browne, one of Tony Blair's favourite industrialists, indicated he had given up on Iraq because the political and security situation in the country had deteriorated so much.

SNIP

"We need a government, we need laws and we need decisions. We have not got any of that yet. A whole range of steps need to be taken," said the BP boss as he unveiled new record profits this week.

"It's not obvious to me you need foreign oil companies to do that ." He added that private oil firms could destabilise an already sensitive situation and perhaps it should be left to local state-owned groups.


see http://www.guardian.co.uk/Iraq/Story/0,2763,1205701,00.html

How bad must the situation be if the oil companies back out???