Brittany Sturdivant
August 29, 2008; 11:00am
Energy and Oil
China and Iraq came to a three-billion dollar oil agreement on Thursday. The agreement with China is the first major oil deal that Iraq has been with a country since 2003. The agreement grants China rights to the Al-Ahdab oil field in the province of Wassit. Under the agreement the Chinese company will offer oil workers, technical advisers, and supply equipment to help with the supply of the Al-Ahdab oil field. China will receive money for the services they provide to Iraq, but they will not share in profits which is a change in the original agreement in 1997 which included the rights to production sharing. In 1997, China had a contact that permitted them to access the Al-Ahdab oil field, but the plan was suspended due to security issues and UN sanctions following the war that crushed Saddam. The deal with Iraq is not what China had in mind, but right now they’re in desperate need for energy. The agreement is waiting the approval of Iraq’ cabinet, but this agreement could be a win for both nations because it will help China with their constant demands in the oil field and will help Iraq with their nation’s economic development. I think this agreement is wonderful for China especially since they’re in a huge demand for oil. China’s population is growing rapidly and their economy is growing at double-digit pace. Since China is in a desperate need for oil I think the agreement is great because it will guarantee China’s oil supplies.
http://www.nytimes.com/2008/08/29/world/middleeast/29iraq.html?ref=world
It's really great seeing two countries agreeing and settling with each other at a time when many other countries are in conflict.
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