Iraqi State Company to Repair Oil Wells(KBR quits?)

[maddezmom]

BASRA, Iraq - An Iraqi state-owned company has been given the job of repairing oil wells that sit on large, lucrative oil reserves in the country's south — a decision likely to mean additional months of pumping delays for an industry already suffering from sabotage and lost revenues.

The decision by U.S. reconstruction officials came after American and other Western companies — including giant oil-field services firm KBR Oil — balked at doing the work without strong legal protections, or indemnifications, guaranteeing they would not be blamed if things went wrong.

Iraqi authorities had promised such protections, according to American officials, but concerns about the Iraqi government's stability prompted Western companies to unsuccessfully demand the same guarantees from Washington.

"Nobody is probably going to take on that type of liability — at least no U.S. company," said Don Lassus, an official with WorleyParsons, an energy services firm that declined the work.

more:http://news.yahoo.com/s/ap/20050828/ap_on_re_mi_ea/iraq_untapped_oil

Will the US taxpayers still honor the contracts? :shrug:

[aquart]

1. Honor WHAT contracts?

Are you saying KBR expects to be paid for NOT doing its job?

[maddezmom]

2. since they have been paid before for driving empty

fuel trucks, etc. I'm wondering if we(the US tax payers) are getting another double f'd with KBR/halliburton. :shrug:

[mbperrin]

3. Quite sure KBR will received payment in full since their lawyers

will argue they showed "full faith" but their employer, that is you and me, "failed" to do so by not indemnifying. Since the government lawyers are unlikely to really oppose this, we'll pay millions for nothing, and I'll bet we pay millions more for the Southern folk to do their work while being under contract for training with....KBR! Who'll be on board for millions more.

After spending years in administration in the oil field, nothing ever surprises me when it comes to money and the "Big Guys">

[TahitiNut]

6. Yes, the ol' "risk of loss" rationale for hughmongous profits ...

... falls by the wayside when they use corrupt government to guarantee profits without any risk ... or even cost. :puke:

[aquart]

7. Bush has no problem abrogating treaties.

It can be a precedent for defaulting on contracts. I'm still waiting for the Treasury default. He's already said nothing is backing Social Security.

[Kagemusha]

4. Uh, wait! Didn't Bush sign something that DID indemnify them?

Is that somehow not good enough any longer?...

[maddezmom]

5. hmmm, interesting link here

http://www.corporatepolicy.org/topics/IraqOIL.htm

[Barrett808]

8. Iraqi state company to repair oil wells after Western companies balk

Iraqi state company to repair oil wells after Western companies balk over liability
By: ANTONIO CASTANEDA - Associated Press

BASRA, Iraq -- An Iraqi state-owned company has been given the job of repairing oil wells that sit on large, lucrative oil reserves in the country's south -- a decision likely to mean additional months of pumping delays for an industry already suffering from sabotage and lost revenues.

The decision by U.S. reconstruction officials came after American and other Western companies -- including giant oil-field services firm KBR Oil -- balked at doing the work without strong legal protections, or indemnifications, guaranteeing they would not be blamed if things went wrong.

Iraqi authorities had promised such protections, according to American officials, but concerns about the Iraqi government's stability prompted Western companies to unsuccessfully demand the same guarantees from Washington.

"Nobody is probably going to take on that type of liability -- at least no U.S. company," said Don Lassus, an official with WorleyParsons, an energy services firm that declined the work.

(more)

http://www.nctimes.com/articles/2005/08/29/news/nation/82805192836.txt

[The_Casual_Observer]

9. The western companies will submit invoices anyway.

As they have for the last 3 years.

[Roy]

10. But, what's the problem/

Melanie Morgan said her 'Journalist for Truth' squad just sashayed right out into the streets and talked to regular Earakees everyday.

These Earakees all, were so very grateful for being 'Mother of all Bombed' and were very happy the U. S. stayed around and didn't want them to leave.

These must be 'Girly Companies'. Yeah... that's it.