Oil Industry Headlines: Week of March 29
Negotiations between Iraqi officials and five oil majors “have slowed but not stopped,” said an oil executive involved in the talks. Both sides are trying to cinch a deal allowing oil companies to help boost Iraq’s production by roughly twenty-five percent. In exchange, the majors will study Iraq’s fields for possible future development. According to Reuters, disagreements over payment and the future role of the majors in oilfield development are the current sticking points.
Years of underinvestment in Mexico’s state-owned oil company, Pemex, has left the nation with dwindling reserves which are expected to only last about nine more years. Oil reform is at the top of the political agenda, but consensus seems far off. President Felipe Calderon supports privatizing all or part of Pemex, while the reigning majority vehemently opposes privatization of any kind. Now another state-owned oil company, Brazil’s Petrobras, is offering to step in and lead the way. “Last week, Brazilian President Luiz Inacio Lula da Silva said he would support a strategic tie-up between Petrobras and Pemex to speed up the exploration of new oil fields,” reported Reuters. After reforming its own operations, Petrobras has seen phenomenal growth and prosperity. “Some conservative lawmakers have suggested that a joint venture with state-owned Petrobras might be easier for left-wingers to swallow than private sector alliances, which many see as tantamount to privatization,” said Reuters.
Published Friday, April 4th, 2008 at 7:42 pm and filed under Industry News.