Precious Geological Commodities

Once you are out of debt, a good place to start investing is in the companies that have bought up Iraq's hydrocarbons. A good reason is that many of the resources have been untapped, and therefore will be of great number once the drilling begins.

Some more information on these oil deals in Iraq can be read here.

The new draft law calls for reviewing and renegotiating these contracts. They include a contract signed by what is now Lukoil Holdings (LKOH.RS) in 1997 to develop the West Qurna oil field but subsequently canceled by Iraq. China National Petroleum Corp signed in the same year a contract to develop al-Ahdab field and Russia`s Stroitransgaz won the right to explore for oil at blocks in Iraq`s Western Desert.

The Kurdish government signed five contracts with foreign oil companies before 2005, including oil and gas companies such as Norway`s Det Norske Oljeselskap (DNO.OS) and Canada`s Addax Petroleum Corp. (AXC.T).

According to the new draft law these contracts would be reviewed by the Kurdish authorities and they need to be approved by an independent consultant appointed by the federal oil and gas council, to be established by the draft law.

Don't worry, our Navy is in the region to protect these precious geological commodities.