Violence in Iraq and Nigeria, high prices in Japan and too much Thai ethanol

This section summarizes downstream developments of the previous month. Exploration & Production are covered in 'Upstream Review'. Violence in Iraq involved the national oil industry when the Deputy Oil Minister Abd al‐Jabbar al‐Wagga'a was kidnapped at gunpoint in Baghdad, along with four other oil officials. The gunmen, who were wearing uniforms used by the Iraqi security forces, broke into a compound housing the State Oil Marketing Organization (SOMO). All five were released on 28th August after a fortnight in captivity. The government has told Lukoil that it does not recognize the contract the Russian company signed with the government of Saddam Hussain in 1997 to explore the West Qurnah oilfield, one of Iraq's largest. Lukoil has been informed that it must resubmit its bid to develop the field, where it will face competition from other international companies. Another important oilfield, Majnoon, was shut‐in for five days in August after nearby inhabitants blockaded the production site in protest against the lack of jobs there for local people. Majnoon's output ‐ at 40,000 bpd ‐ remains well below the field's capacity as a result of violence in the south of Iraq ( see 'Focus'). Despite the unrest across Iraq and the lack of laws covering foreign investment, the government has recently signed deals covering the building of new pipelines and other developments with Turkey, Iran and Syria.