Gulf Keystone. Food for thought.

Pie chart of world oil reserves by region

BAGHDAD: After an explosive device tore through the back of an armoured SUV carrying Chinese oil workers in Iraq in mid-July, security contractors said the US military, not China’s Daqing Petroleum, was the likely target.

The Explosively Formed Projectile, designed by Iran’s Revolutionary Guard Corp and often used by Shi’ite militia in Iraq, shredded the rear of the car and exited on the other side just behind the passenger seat.

Three Chinese workers, who were helping develop Iraq’s biggest oilfield Rumaila, received scratches and light burns. One security guard sitting in a front seat was hit by fragments.

Oil companies so far have shrugged off security concerns after sealing a dozen deals in Iraq, which have the potential to quadruple the country’s production capacity to rival Saudi levels of 12 million barrels per day.

“We have not had indications of international oil companies being targeted in any sense, and I think at the end of the day that will depend on what will be the motivation for those attacks,” said a foreign oil executive working in Iraq.

US military officials also said they did not think Shi’ite militia were targeting oil workers or facilities in the July 15 attack. “I think it is only a possibility,” said Major General Stephen Lanza, the US military spokesman in Iraq.

Yet after US forces ended combat missions in Iraq on Aug. 31 and cut their numbers to 50,000 7-1/2 years after the invasion, some security firms and Iraqi officials are wondering whether Sunni Islamist insurgents and Shi’ite militia might now focus on the companies developing the vast oil reserves.

In a statement posted on a radical Islamic website last month, a writer called for attacks on oil pipelines across Iraq on the grounds that oil was a main reason behind the invasion of “Muslim homes by atheist and disbelieving countries”.


Oil is viewed by Iraqi and US officials alike as the panacea for Iraq’s ills. Everything depends on whether the OPEC member can secure its vital oilfields, export pipelines and refineries.

The government has placed security forces and oil police on alert for attacks by al-Qaeda-linked groups as the US ended combat operations and intelligence reports warned of a threat to oil facilities.

“Of course there will be some attempts to target (oil firms), but the areas where they work have good protection from Iraqi forces,” said Safa al-Sheikh, acting National Security Adviser.

“We don’t have accurate intelligence showing an increase (in attacks), but one thing we know about terrorists is that they resort to all possible means and attack anybody they can.”

Came across this article.


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  1. Ssh-Andy says:

    Brokermandaniel, your comments surprise me. This has been going on for years. And why did you attach this headline to this report.
    “Gulf Keystone. Food for thought.”
    I can only think your motivation to suddenly link a totally unrelated article to Gulf Keystone in this way is because your looking to buy in or top up on your Gulf keystone shares.

    Hopefully you can give us a good explanation for linking an unrelated article in this way.
    “Gulf Keystone. Food for thought.”

    • Brokerman says:

      Unrelated article? Get real GKP are in Iraq!
      ssh Andy there is a war raging on around Kurdistani controlled oil/drilling areas of IRAQ. sticking your head in the sand and pretending that all is hunky dory in the middle east is a sure fire way to become an “Emperor with no clothes”
      When researching any stock,bond, region, company, play, we here take on board all geo-political news germane to the play.
      Drop your emotion/subjectivity when researching investments. Emotional outbursts such as your post denying the relavance of the article is plain for ALL to see.


    • tobyjug says:

      what are you posting an grumblin about here?
      Andy pandy back to loopy lu land and watch wiv mother..
      Are you deranged or some thing?


  2. Davey says:

    Numpty alert.
    ssshhh it’s andy.
    Bombs are going off on a daily basis in iraq GKP operate in iraq.
    Go back to sleep mate.


  3. Biggleswick says:

    A person will always incur utter spite/wrath when he or she is not telling PIs what they want to hear. Especially when those people have piled their money into that which he or she is advising caution on.

    Any noob that believes Iraq is a walk in the park needs to take their meds. Oil there may be but getting it out and safely into production could take years and lives risked. Safety is far from certain there, even now.

  4. pilot says:

    Very interesting and relative article.

    While researching G4S security the other day, they make loads of references to Iraq and new security deals. Including providing services for oil… Worth googling g4s and iran if anyone’s interested.

    Thanks for the informative articles and your insightful views Dan.

  5. haveyoueverbeen? says:

    Changed your tune since you posted this in August Dan

    “The current political mess fouling up Kurdistan/Iraqi oil is seen by some here as the reason for the current undervalued stock, the truth of the matter is that outside of Kurdistan there is a violent insurgency being fought, that is the ONLY reason why GKP stock is trading under expectations”

    Nothing has changed since then; so why your change of tack. Why when you are aware of the names of several companies drilling in Kurdistan, did you publish an “article” about Iraq (South) and link it solely to GKP?

    Not got yourself hitched up to Elena have you??

    • Brokerman says:

      It doesn’t matter where in Iraq bombs explode. If you invest here and i am fully invested and still holding for the long-term,
      you need to fully realise why the sp is currently stuck and struggling to break 130p.
      I am merely pointing out to the less well versed that any perceived withdrawal by the USA will effect all companies in Iraq. As a holder of GKP this effects us all and we should expect a bumpy ride and not be fooled by the cretins posting nonsense on the net.


  6. haveyoueverbeen? says:

    You talk a lot about cost of security and the numbers of guards etc for the recent visit. Can you give some firm figures as to what each company is paying for security. Could you also give some figures as to how many security personnel were involved in the recent visit by analysts. Could you break that down by type of security professional and how much they cost?

  7. Jules says:

    Put your wooden spoon away haveyoueverbeen.

    Good post, thanks