Thursday, June 25, 2009

Today's Fly Or Die Commerce Report

According to The Wall Street Journal, early next week the Iraqi government plans to "auction off oil contracts to foreign companies for the first time since Iraq nationalized its oil industry more than three decades ago.

Thirty-five companies will bid over six Iraqi oil fields- which reportedly "hold reserves of more than 43 billion [oil] barrels." The Wall Street Journal states that foreign bidders will not get ownership of the oil reserves. However, they will be paid for helping to increase the oil production.

The timing of this auction coincides with Iraq arguably being at the height of their political turmoil. Many Iraqis are crying foul due to this fact.

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