Russian oil company Zarubezhneft has been granted approval to drill 45 oil wells in Iraq, according to U.N. officials on February 26th.
Diplomats indicated that the $8 million project had been approved in mid-December by the U.N. Iraqi sanctions committee in an effort to allow Baghdad to boost oil production, although some officials had denied the reports on February 23rd, saying that the contract would be in breach of sanctions.
Zarubezhneft, which is joined in the venture by Tatneft, will drill the wells in the existing Bai Hassan and Saddam oilfields in northern Iraq.
Western diplomats said that increasing Iraqi oil production would result in more funds to supply humanitarian goods to Iraqi citizens under the oil-for-food program.
The diplomats indicated that the contract had been held up by the U.K., but was finally approved in December.
The sanctions committee has also blocked the approval of at least two other oil field development contracts, including one for Tatneft to drill 33 wells in the Bai Hassan, Saddam and Kirkuk fields and one for China Petroleum to drill 45 wells.
On February 27th, China said that it would investigate U.S. allegations that Chinese workers had aided Baghdad in rebuilding its air defenses.
Foreign Ministry spokesman Zhang Qiyue insisted that China recognized U.N. sanctions against Iraq and has established rules forcing Chinese companies to comply with the sanctions.
But, he said that: “Regarding the situation raised by the U.S. side, China can conduct an investigation.” U.S. President George W. Bush had said on February 23rd that Beijing had promised to remedy the situation if the charges were proven to be true.
© 2001 Mena Report (www.menareport.com)
