Russian firms willing to invest in oil sector

 

By Abdulatif al-Mawsawi

 

Russian oil firms are ready to lend the country a helping hand in modernizing its installations and developing new fields, according to an Oil Ministry source.

 

The source, refusing to be named, said Oil Minister Thamir Ghadhban was in Russia recently as part of a tour of China and several European countries.

 

The source said Ghadhban’s Russia talks also touched on how to work out a formula to reduce Russian oil companies’ debts on Iraq.

 

The former regime of ousted leader Saddam Hussein had signed multi-billion dollar deals with a consortium of Russian oil firms to develop giant fields in the south.

 

It is not clear whether those deals still stand as they were struck while the country was still under U.N. trade sanctions.

 

But the official said Ghadhban’s Russia deliberation included “joint cooperation following Russian oil firms’ desire to contribute to the development of Iraqi oil sector and its rehabilitation.”

 

The source said cooperation with Russian firms was of “mutual benefit.”

 

“Iraq’s relations with Russian oil firms cover a long period of time. Iraq thinks these firms are solid and reliable and is also willing to cooperate and deal with them,” he said.

 

He said Iraq was looking forward to establishing joint oil projects with Russian firms which “have good and practical experience since they have been working in the country for a long time.”