http://www.newsnow.co.uk/A/649035888?-12497:5915 Chinese companies do not have to answer to shareholders, pay dividends or even generate profits. They are tools of Beijing’s foreign policy of securing a supply of energy for its increasingly prosperous and energy hungry population. “We don’t have any problems with them,” said Abdul Mahdi al-Meedi, an Iraqi Oil Ministry official who handles contracts with foreign oil companies. “They are very cooperative. There’s a big difference, the Chinese companies are state companies, while Exxon or BP or Shell are different.”
China is now making aggressive moves to expand its role, as Iraq is increasingly at odds with oil companies that have cut separate deals with Iraq’s semiautonomous Kurdish region. The Kurds offer more generous terms than the central government, but Iraq and the United States consider such deals illegal.
Late last year, China National Petroleum Corp. bid for a 60% stake in the lucrative West Qurna I oil field, a stake that Exxon Mobil may be forced to divest because of its oil interests in Iraqi Kurdistan. Exxon Mobil, however, has so far resisted pressure to sell, and in March the Chinese company said it would be interested in forming a partnership with the U.S. company for the oil field.
It’s pretty simple . . . China needs more energy and needs to diversify its sources If the U.S. invasion and occupation of Iraq ended up benefiting China, U.S. energy experts say the unforeseen turn of events is not necessarily bad for U.S. interests. The increased Iraqi production, much of it pumped by Chinese workers, has also shielded the world economy from a spike in oil prices resulting from Western sanctions on Iranian oil exports. And with the boom in U.S. domestic oil production in new shale fields surpassing all expectations over the last four years, dependence on Middle Eastern oil has declined, making access to the Iraqi fields less vital for the United States.
At the same time, China’s interest in Iraq could also help stabilize the country as it faces a growing sectarian conflict.
“Our interest is the oil gets produced and Iraq makes money, so this is a big plus,” said David Goldwyn, who was the State Department coordinator for international energy affairs in the first Obama administration. “Geopolitically it develops close links between China and Iraq, although China did not get into it for the politics. Now that they are there they have a great stake in assuring the continuity of the regime that facilitates their investment.”
For China, Iraq is one of several countries it increasingly relies on to keep its growing economy running. China recently became the world’s biggest oil importer, and with its consumption growing, it is investing heavily in oil and gas fields around the world – US$12 billion worth in 2011, according to the U.S. Energy Department. More than 50% of its o
China reaps huge benefits of Iraq’s post-Saddam oil boom
Republish Reprint Tim Arango and Clifford Krauss, The New York Times | 13/06/03 2:33 PM ET More from The New York Times
KARIM SAHIB/AFP/Getty ImagesUnlike the executives of Western oil giants like Exxon Mobil, the Chinese happily accept the strict terms of Iraq’s oil contracts, which yield only minimal profits. China is more interested in energy to fuel its economy than profits to enrich its oil giants. Twitter Google+ LinkedIn Email Comments More BAGHDAD – Since the U.S.-led invasion of 2003, Iraq has become one of the world’s top oil producers, and China is now its biggest customer.
China buys nearly half the oil that Iraq produces, nearly 1.5 million barrels a day, and is angling for a bigger share, bidding for a stake now owned by Exxon Mobil in one of Iraq’s largest oil fields.
The Chinese had nothing to do with the war, but from an economic standpoint they are benefiting from it “The Chinese are the biggest beneficiary of this post-Saddam oil boom in Iraq,” said Denise Natali, a Middle East expert at the National Defense University in Washington. “They need energy and they want to get into the market.”
Before the invasion, Iraq’s oil industry was sputtering, largely walled off from world markets by international sanctions against the government of Saddam Hussein, so his overthrow always carried the promise of renewed access to the country’s immense reserves. Chinese state-owned companies seized the opportunity, pouring more than US$2 billion a year and hundreds of workers into Iraq, and just as important, showing a willingness to play by the new Iraqi government’s rules and to accept lower profits to win contracts.
“We lost out,” said Michael Makovsky, a former Bush administration Defense Department official who worked on Iraq oil policy. “The Chinese had nothing to do with the war, but from an economic standpoint they are benefiting from it, and our 5th Fleet and air forces are helping to assure their supply.”
The depth of China’s commitment here is evident in details large and small.
In the desert near the Iranian border, China recently built its own airport to ferry workers to Iraq’s southern oil fields, and there are plans to begin direct flights from Beijing and Shanghai to Baghdad soon. In fancy hotels in the port city of Basra, Chinese executives impress their hosts not just by speaking Arabic, but Iraqi-accented Arabic.
Notably, what the Chinese are not doing is complaining. Unlike the executives of Western oil giants like Exxon Mobil, the Chinese happily accept the strict terms of Iraq’s oil contracts, which yield only minimal profits. China is more interested in energy to fuel its economy than profits to enrich its oil giants.
Chinese companies do not have to answer to sharehol
Sorry about the confusion when I first posted the update earlier I didn't realise the link I posted wasn't workin, which I have since corrected & posted.Anyway when I googled in Spanish asking when the final debate would be for the reform bill I scrolled down & this is what I saw before clicking on the source www.eluniverso.com/.../mineras-ven-cautela-reformas- ... - Translate this page 11 hours ago - May The amendments to the Mining Act would go to first debate on June 4, 21 ... "We are updating one o'clock ET ? So it's left me wondering if its tomorrow for the final debate. I will search some more to see if I can find a clearer answer.I know it's classed as urgent so tomorrow wouldn't surprise me
I only ventured into shares and investments a few months ago, Listening to others on here i have been quite lucky on what i picked. Yes i did some research but some was put on as i liked the name (INvU) i envy you ??? That doubled my money, XTR and FRR both come up trumps. RRR same. VOg and TXO both let me down but i think both will do ok. My biggest investment is in GKP, i am up on it now today and its my main hope. But so far i have had beginners luck, so if it continues then my luck can only be good news for all in here. So thats my feel good speech done. I am in Brazil on Thursday so out of the loop, probably big news in my absence. First thing i will do on return to UK is check my GKP
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