Return to Transcripts main page
CNN Live At Daybreak
Iraq: The Weapons Hunt: Oil Concerns Russia
Aired December 17, 2002 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Now on to the hunt for weapons in Iraq. An oil deal is the focus of some frustration right now for Russia.
Nic Robertson joins us live from Baghdad with more on that.
NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, Igor Ivanov, Russia's Foreign Minister, has appealed to Iraq to reverse or reconsider, at least, its decision over last weekend, a decision announced by the oil minister here, to suspend, essentially stop a contract, a very lucrative contract for Russia's largest oil company, Lukoil.
Now back in 1997, Lukoil signed a deal with Amir Rasheed, the Oil Minister here, for -- to exploit the al Qurna oil field in the south of Iraq. This oil field has several billion barrels of oil. Now under the terms of the deal, the real exploitation wasn't due to begin until the U.N. sanctions were lifted in Iraq.
Now Amir Rasheed has said the reason he has told this oil company, Lukoil, that they want to terminate the deal is because the company hasn't done any groundwork, hasn't started laying some preparations already. However, the head of Lukoil feels it may have been a political motivation here, the fact that Russia signed up to U.N. Resolution 1441, that it backs the inspection programs here. He believes that may be the root of the -- of the canceling of the contract. However, Amir Rasheed, the Oil Minister here, says no that's not the case. It is merely because the Russian company failed to begin to get on with any work. He said that any other Russian oil company that wants to apply for contracts is free to do it.
It does perhaps give a -- give a sense of uncertainty to the Russians at this time. For a long time, Russia has been a very strong ally of Iraq, has pushed within the bounds of all U.N. resolutions, has pushed Iraq's case and put it forward and been a go-between on many cases between Iraq, the United Nations and the United States. This time it seems Iraq perhaps -- rather, Russia perhaps feeling that it is perhaps being unfairly treated -- Carol.
COSTELLO: Nic Robertson live from Baghdad this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired December 17, 2002 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Now on to the hunt for weapons in Iraq. An oil deal is the focus of some frustration right now for Russia.
Nic Robertson joins us live from Baghdad with more on that.
NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, Igor Ivanov, Russia's Foreign Minister, has appealed to Iraq to reverse or reconsider, at least, its decision over last weekend, a decision announced by the oil minister here, to suspend, essentially stop a contract, a very lucrative contract for Russia's largest oil company, Lukoil.
Now back in 1997, Lukoil signed a deal with Amir Rasheed, the Oil Minister here, for -- to exploit the al Qurna oil field in the south of Iraq. This oil field has several billion barrels of oil. Now under the terms of the deal, the real exploitation wasn't due to begin until the U.N. sanctions were lifted in Iraq.
Now Amir Rasheed has said the reason he has told this oil company, Lukoil, that they want to terminate the deal is because the company hasn't done any groundwork, hasn't started laying some preparations already. However, the head of Lukoil feels it may have been a political motivation here, the fact that Russia signed up to U.N. Resolution 1441, that it backs the inspection programs here. He believes that may be the root of the -- of the canceling of the contract. However, Amir Rasheed, the Oil Minister here, says no that's not the case. It is merely because the Russian company failed to begin to get on with any work. He said that any other Russian oil company that wants to apply for contracts is free to do it.
It does perhaps give a -- give a sense of uncertainty to the Russians at this time. For a long time, Russia has been a very strong ally of Iraq, has pushed within the bounds of all U.N. resolutions, has pushed Iraq's case and put it forward and been a go-between on many cases between Iraq, the United Nations and the United States. This time it seems Iraq perhaps -- rather, Russia perhaps feeling that it is perhaps being unfairly treated -- Carol.
COSTELLO: Nic Robertson live from Baghdad this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
