Iraqi oil minister visits, talks to oil co, energy min, presser

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• published: 21 Jul 2015
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SHOTLIST 1. Wide shot "LUKOIL" HQ 2. Wide shot "LUKOIL" sign on the building 3. Wide shot beginning of press conference, Husayn al-Shahristani, Iraqi Oil Minister, takes seat 4. Photographers 5. SOUNDBITE (Arabic) Husayn al-Shahristani, Iraqi Oil Minister: "I told the representatives of Russian companies which expressed their interest and intention to work in Iraq and invest their money in Iraq, and reassured them that at present Iraq has an acute need to develop the extraction of crude oil, and that Iraq is open to all the world's largest companies to take part in tenders provided they meet the conditions for development of the project. They will have the opportunity to develop Iraqi oil, and those who can offer better terms for Iraq will get, being treated equally, the right to develop oil deposits in our country. In addition, naturally, they should meet conditions stipulated in the law concerning oil that is currently being prepared by our country's legislative body." 6. Press cutaway 7. SOUNDBITE (English) Husayn al-Shahristani, Iraqi Oil Minister: "However Iraq, as a founding member of OPEC, will try to maintain a balance between supply and demand in the market to maintain the price of crude oil at a level that is reasonable and acceptable to both the consumers and the buyers." 8. Wide shot of press conference STORYLINE Iraq's national oil company will develop the country's giant West Qurna oilfield and decide which foreign companies to work with, said the country's oil minister on Thursday, after meeting in Moscow with the top executive from Russian oil giant Lukoil, which is seeking to resume its work at the field. Iraqi Oil Minister Husayn al-Shahristani told reporters in Moscow that OAO Lukoil's previous experience in Iraq gives it a competitive advantage in gaining new contracts there, but the company will get no special treatment from the government. "They will have the opportunity to develop Iraqi oil, and those who can offer better terms for Iraq will get, being treated equally, the right to develop oil deposits in our country. In addition, naturally, they should meet conditions stipulated in the law concerning oil that is currently being prepared by our country's legislative body," said al-Shahristani. A new law that will review previous oil contracts and will open the way to a wave of tenders to tap Iraq's enormous oil wealth is due to be discussed by parliament in September. If approved the tender process could start that month, al-Shahristani said. He said Lukoil's previous experience increased its chances of winning a tender. Lukoil had an agreement with Saddam Hussein's government to drill at West Qurna, and has been angling to get renewed access to the field since Saddam's overthrow and the U.S.-led invasion Earlier, al-Shahristani met energy minister Viktor Khristenko, as well as having a meeting with the Lukoil CEO Vagit Alekperov, which lasted over two hours. "They discussed joint projects, in particular West Qurna-2," Lukoil said in a statement. No further details of the meeting were provided. Analysts have said that U.S. oil giant ConocoPhillips' stake of 20 percent in Lukoil could help the Russian company return to developing West Qurna, which previously had an estimated reserve capacity of 4 billion barrels. Lukoil struck its deal in 1997 at a time when Iraq was under United Nations sanctions. The contract has been hamstrung under its new authorities following the invasion, which Russia adamantly opposed. All previous oil contracts in Iraq are due to be reviewed in accordance with proposed new legislation that aims to divide the country's oil wealth among Sunnis, Shiites, Kurds and other Iraqi groups. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/871c9aefc3c29948b8cc9ff652389bb5 Find out more about AP Archive: http://www.aparchive.com/HowWeWork