Iraq voids a Russian Oil Contract

Iraqis worked at a pumping station in the West Qurna oil field in 1999.

From:http://www.nytimes.com/2007/11/04/world/middleeast/04oil.html?_r=1&ref=middleeast&oref=slogin
By Andrew E. Kramer

The filed, West Qurna, is a super-giant oil field in southern Iraq. It has estimated reserves 11 billion barrels. A Russian Company Lukoil had signed the contract with Saddam Hussein government. Although later this contract had canceled by the Saddam government, Russian still hopes the contract will be validate.

The one who guided Iraq to cancel the contract is US. It is interesting to see that happened since US had been invaded Iraq for its oil resource. To Russia, Iraq is controlled by the US, especially the oil related, is directed decided by the US administration.

The field will be waiting for a new bidder next year. Nevertheless, Kremlin spokesman said that government will try to protect its company interests in these kinds of affair. Oil is such a important necessary thing to Russia and it wants to expand its oil wealth internationally.

In reality not just Iraq did something to Russia, but Russia also decided to do something to gain what they want. Russia might go to revoke the 2004 deal of forgive $13 billion debt. It seems more like a threaten, but to my own opinion, Russia just doing whatever they want, US has no authority to order Russia what should do or should not do.

This problem might have solution soon because Bush had said US did not push Russian out of Iraq and tried to create a condition that both the countries working together. And in response Putin said, “I have no reason not to believe him.”

So now we should know and understand, how important oil is, not just for economy reason, but also for politics issues.