Iraq Looking to China to Revitalize Oil Industry
A good WSJ article a clipped a while ago that looks at Iraq’s turn to China for investment capital for the oil industry.
Iraqi President Jalal Talabani, set today to begin a week long trip to China, is expected to ask Beijing to revive a $1.2 billion oil-exploration deal it established with Iraq during Saddam Hussein’s rule. He is coming to Beijing with a delegation that includes his oil minister.
While recent experiences in Africa have made China more risk-averse when it comes to going into violitile regions for natural resources, it is still more risk-seeking than Western oil majors:
Increasing instability and violence are scaring off most Western oil companies, which don’t want to send their employees into a war zone. Some analysts say China has a higher appetite for risk because its state-controlled oil companies must place national energy security before employee safety.
I say, bring them in! Another region where our interests are converging with China’s. We want more stability, they want more stability. Lots of opportunities for making deals here.
