Russian oil giant cut off from oxygen in Iraq

Iraq has annulled or suspended a number of oil contracts with foreign companies, including Russian ones.

Among the annulled or suspended contracts are the agreements which were concluded in Saddam Hussein's time with Russian and Chinese companies, reports the BBC.

According to Iraqi Petroleum Minister Tamir Gadban, appointed by the American occupation forces, the contract with Russia's biggest company LUKoil for the development of the oil deposit in Western Qurna has been fully stopped, and the deal with China for the exploration and development of the al-Adhab deposit has been frozen "with the agreement of both sides." No details about the third contract has been reported.

Incidentally, the former Iraqi leadership also intended to annul the contract with LUKoil because the Russian company had allegedly not met its commitments.

The Iraqi Petroleum Minister said that the other prewar contracts would also be revised, and in the near future it is expected that new agreements will be concluded with international companies for developing huge oil resources of Iraq.

As Tamir Gadban said, at its first steps, the country intends to produce about 700,000 barrels of oil a day, but it plans to reach the prewar level of three million barrels a day by the end of this year.