RusEnergy

03 May 2007 - Upstream OnLine - Russia wants access to a major Iraqi oilfield in return for writing off the country's debt - but Baghdad has slammed the offer, with Iraqi Finance Minister Bayan Jabor calling it "unacceptable". Jabor, in Sharm el-Sheikh for an international conference on Iraqi stability and reconstruction, said Iraq's creditors were all keen to gain access to its oil wealth and the nation could not agree to such a link. "The Russians are hesitant. They want investment in the Rumaila oilfield in return for eliminating the debt," Jabor told Reuters. Moscow has forgiven Iraq much of the debt it owes, but not the entirety. The world's top oil companies have been manoeuvring to win a stake in oilfields in Iraq, but are awaiting passage of its oil law, expected within weeks, and a return of law and order. The North and South Rumaila oilfields in the south of the country make up the bulk of Iraq's crude exports, which run at about 1.5 million barrels per day. Iraq's oilfields are suffering from decades of wars and sanctions, but the Rumaila fields could sustain production of around 1 million bpd with the help of foreign investment, analysts said. Russian producer Lukoil also wants to revive a deal for the 600,000 bpd West Qurna oilfield that was scrapped by the government of Saddam Hussein at the end of 2002. Jabor did not name the oilfield concerned.