The New York Times is reporting that the four major oil companies who were kicked out of Iraq 36 years, have all received no-bid contracts to service Iraq’s oil fields. Apparently, their work is being extended because the 2 years of volunteer work and advising they did for no pay.
The contracts, the two oil company officials said, are a continuation of work the companies had been conducting here to assist the Oil Ministry under two-year-old memorandums of understanding. The companies provided free advice and training to the Iraqis. This relationship with the ministry, said company officials and an American diplomat, was a reason the contracts were not opened to competitive bidding.
Because the contracts are for service work the companies will be paid for their work:
The no-bid deals are structured as service contracts. The companies will be paid for their work, rather than offered a license to the oil deposits. As such, they do not require the passage of an oil law setting out terms for competitive bidding. The legislation has been stalled by disputes among Shiite, Sunni and Kurdish parties over revenue sharing and other conditions.
Tags: major oil companies, new york times, News, Oil, oil ministry, War, war with iraq