How safe are oil plays in Iraq and Pakistan?

Denny

I was listeingin to a Candian oil analyst on the radio today, Joseph Schacter, who recommends Niko Resources, based on its large reserves in off shore Pakistan and northern Iraq - Kurdistan.

I feel leery about both those locations, the combination of terrorism risk, from sabotage, or confiscation risk.

Any thoughts on the relative safety of these locales?

rockdoc123 · Light Sweet Crude Joined: May 16, 2005 Posts: 1707

Well offshore anywhere is pretty safe (exclusive of the shallow parts of the Niger Delta where the small boats can go). Pakistan and India have been at a "go ahead cross that line" situation for decades so can't think that will escalate quickly unless something unusual happens.

Kurdistan is actually pretty safe. There are rumours of Taliban running around but no incidents with the oil companies so far.

That being said any oil company facility is at risk at any given time. If they want to get you they can.

heroineworshipper

As long as U don't visit in person, they're perfectly safe.
_________________
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There will be enslavement, cannibalism, & zombie invasions.

ROCKMAN

rockdoc,

It's even safer when you have a body guard. Last year I was drilling offshore Equatorial Guinea close to the Nigerian line. Every few days we had an EG gunboat sweep through the area.

From what I've read recently about the rising internal strife in Pakistan over electrical shortages, a growing risk in E&P investments there may be nationalization. Clearly the gov't is far from stable today. Expat companies are easy targets to offer the screaming masses.

Do you have an idea of the state of offshore Pakistan production? Now that the point has been brought up I don't recall hearing anything about that area.