Russia in new deals with U.S. : Lukoil and Iraq

Russia Sends Message to U.S. About Iraqi Oil Contracts

NY Times -September 27, 2003

The moment was a small but sweet victory for the Russian oil baron Vagit Y. Alekperov: the Getty gas station he bought in Manhattan three years ago was renamed yesterday after his own huge oil company, Lukoil, and President Vladimir V. Putin of Russia was on hand to ring in the change, coffee cup in one hand and Krispy Kreme doughnut in the other.

Mr. Alekperov wanted American consumers to understand that they need Russian oil and that companies like his are ready to provide it. For the last two years, oil has become an increasingly powerful bond between the United States, the world's largest consumer, and Russia, among the largest producers.

But Mr. Alekperov's trip to the United States as part of Mr. Putin's entourage may partly be in the hope that the Bush administration could help Lukoil with a crucial oil interest outside Russia: the huge West Qurna field in Iraq.

Lukoil is among several foreign companies that negotiated contracts and memorandums of understanding with the government of Saddam Hussein to develop oil fields once United Nations sanctions were lifted. The sanctions are gone, but so is the old government. Lukoil, along with the other companies, now worry that the agreements they spent years and millions of dollars to develop will be abrogated by the new Iraqi authorities.

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printed from Russia in new deals with U.S. : Lukoil and Iraq on 2004-06-03 13:41:08