New Iraq Signs First Oil Contract

According to this Sydney Morning Herald report, the Iraqi Oil Ministry has awarded a contract, the first since the fall of Saddam Hussein's regime, to develop the Kormale Dome oil field in the northern province of Irbil. Oil Ministry spokesman Assim Jihad said the contract was a $136 million joint venture agreement among three companies, the Kar Company of Iraq, Turkey's Avrasya, and Britain-based Dynamic Processing Solutions. Kormale Dome is expected to produce 100,000 barrels of oil and 100 million cubic meters of gas per day.

To address the frequent terrorist attacks on pipelines and other facilities, spokesman Jihad said the Ministry would soon open bidding for contracts to provide security services. Naturally, these developments are good news and it's interesting that security is going to be contracted out. Rather than have the government provide security, the Ministry appears to prefer a rental guard force. The relative effectiveness of a private security force will surely be scrutinized.

Companion post at The Jawa Report.