By Micah Halpern
Sunday July 22, 2012
I've Been Thinking:
Chevron just signed an oil exploration deal with Iraqi Kurds. Chevron is the second largest US oil company, right after ExxonMobil.
Well, actually, the Iraqi Central government wants control over all oil deals. They want them coordinated through their oil ministry.
The Kurds say that the constitution enables them the power to negotiate their own oil contracts. And that is just what they did.
According to sources Chevron paid between $200 and $300 million for the exploration of just several sites. In addition, according to the agreement the region receives $3-$5 per barrel. It is a much better local deal than the one struck earlier by the Central government.
There is no doubt that the strength and the future of the Iraq, as well as its stability, lies with will the regions, not the Central government. Iraq's economic viability is dependent on regions, not the Central government.
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