RE: GKP and its position right now.Today 09:36
Hi Theoryman, you pose two questions which I expect they are asking. "Why should the FGI now have to pay off the excess for the rest of the lifetime of the contract". Well its all about base risk, and any investor here since the start is certainly not awash with profit that's for sure. However its more about image if they want overseas investment for anything, you cannot try to change contracts mid term just because some feel the original terms were too generous originally. World of difference in extracting easy oil from already producing wells with access and some infrastructure already built, from have literally nothing at all.
This is at a time when they are trying to get foreign investment in, it sends wrong message to any observer hoping to invest in Iraq in order to make a decent profit.
Very few companies invest in Iraq because they love the people. putting up with the poor living standards, hygiene, lack of electricity, high crime, extortion, need for constant security, tough working conditions and harsh climate with Islamic rules is only done so for profit, so those doing it expect a decent return.
If they don't think this is true, just look at the exodus of western companies from Iraq. They know the truth, they are just trying it on the way some thieving Arabs often do. Could quote plenty of other examples and not singling out Iraq or Kurdistan, but you find it in every Arab nation that any frequent and world wise traveller will confirm.