why is bob dudley there? ryan: we will be talking to bob dudley in about an hour and a half. two days, opec has what they call the seminar. it is on wednesday and thursday. on friday they get together as a group. it is during the seminar that they get together with oil executives, rex taylor and bob dudley and exchange views and do deals. guy: ryan chilcote covering vienna. when we come back, we will talk fifa. that story continues to develop. we bring you up to speed with the latest details. ♪ guy: half past the hour. you are watching "the pulse," live from bloomberg's european headquarters. i am guy johnson. hans: i am hans nichols, sitting in for francine. i do not know how well i am acquitting myself. maybe that is the. twitter question interpol has issued red notices for fifa members following sepp blatter's resignation. prosecutors looking into blatter as part of their corruption probe. guy: the greek prime minister alexis tsipras heads to brussels, where he's expected to the made a final offer ahead of a debt deadline friday. the imf met monday to draft a deal for gree

scarlet: that was bob dudley, the ceo of bp. think the industry is dealing with continued oversupply and pressure on prices. you look at the rig count, dealing with 60% loss of rigs but still seeing production continued to climb. bp --ll see copies like iran is saying we will export 100 million barrels a day within six months of sanctions being lifted. that's the opportunity there. alix steel will be coming back in 15 minutes. we will talk more about the bond drought. we have more news coverage for you right now. we have the federal reserve releasing its latest snapshot of the economy. the beige book says the u.s. economy expanded in the past few months even as manufacturers took a hit from the stronger dollar. fed districts reported moderate growth and three others described expansion is modest. bill ackman is looking for international buyers for the sale of bond holdings -- he will attend meetings to market dollar pots outside of the u.s. deutsche bank and ubs -- other bems will become managers -- comanagers. they are all subj

i was talking to bob dudley, he said that would be a psa, a production sharing agreement that is whereuld award the contract where someone could explore and drill, cover the costs with revenue from the drilling, and then share that revenue with the islamic republic. i put that idea to the oil minister of iran and he said no cigar. >> not psa. ryan: you think it is unfair? >> it makes the situation more -- attractive for them. long-term -- but it is not psa. ryan: this is contentious stuff. the alternative is a service contract, that is what iraq does with a lot of oil companies. a lot of the oil companies do not like them. they think they are economically not very profitable. the question is who has the upper hand? presumably it is the iranians because all of the oil companies want to get in so the iranians should be a will to dictate conditions. i spoke with the owner and ceo of russia's largest independent oil company, he was in iran for a long time, i said is this the case? he said actually they don't call the shots. grexit countries with large oil and gas reserves are beginning to

i was asking bob dudley about what it would take to get him back. he said it would take a psa. mr. be a big step to go back into iran in an uncertain environment. psa's would give us the most certainly. ryan: psa's are good insurance policies for drillers and oil companies but they are not always popular with the countries themselves. iran's oil minister said no cigar. mr. zanganeh: a contract not psa. >> you think it is unfair? mr. zanganeh: it makes for a tough situation. a more effective thing for them. it is not a psa. ryan: the alternative is a service contract where the country owns the oil, they own the reserves and they pay the oil company a certain amount of money per barrel to get it out of the ground. that's what the iraqis do. international oil companies are not too happy about the situation in iraq. you've got ask yourself who has the upper hand? all the oil companies want to get into iran. does that mean iranians dictate the conditions? i caught up with the billionaire owner and a stakeholder in a company called lukoil. a longtime player in iran that had to leave with

one of them bob dudley.n an exclusive interview, he had this to say about the surplus oil supply. >> fundamentally supplies at a loss of supplied. u.s. oil production is certainly up and then flat. not falling. is not the growth rates we saw before. there is just a lot of oil around. betty: he said he is interested in investing in iran if international sanctions are removed. look at the top stories at this hour. "market makers." a wonderful thing. coming up -- betty: you are just lurking, that is all. mark: we will hear from a california winery ceo. he started his own super pac. is it a new trend? betty: are you ending your e-mails all wrong? i ignore all of mark's e-mail. best is the worst thing you can do. with stadium construction already underway, we will look at the controversy over holding the 22 world cup in cutter. betty: two huge deals and telecom. para 416.7g all billion. with the backdrop, ceos are on constant lookout or new targets. whitman, ceoay meg of hewlett-packard, sat down with emily chang

speaking to bob dudley the world gas conference he was pointing out it will be more about emp and gas than oil as well. i wanted to get his take of what's going on. we spoke for a good half an hour. in terms of opec i asked him the question do you think it's defunked? is it as effective as it used to be? >> the different parts of opec in terms of the prosperity of the different countries, some are bound and determined to stay on path if they can afford more so there's probably lots of debate going on inside of opec. i think they have a path. i think it's based on fundamental economic principles. so i would expect them to stay on course. >> i see 12 producers who all want to produce if the saudis fail to produce. everybody says we want saudi and nigeria. no one else wants to do it apart as well. they want saudi to do all the heavy lifting. i don't know if you agree. >> there's a history of that if you look back in type. there's a little bit of that and the expectation for saudi arabia produces such a big block of the oil. 9 or 10 million barrels a day and the uea in particular. they pr

i was talking to bob dudley. he was talking about reduction sharing agreements, psa's.d allow an international company to come in, explore and a drill. they would be able to cover the cost with the revenue they generate from that and share the profit with iran. that is something that has worked in other countries in the past. russia had a bunch of them. it does not mean it is something iran is happy to do. i caught up with the iranian oil minister. >> iranian form of contract, not psa. ryan: you think it is unfair. >> it makes a tough situation more -- long-term but it is not psa. ryan: there is no doubt they are good for international oil companies in that they know costs will be covered. there you hear iran suggesting maybe they are not the best deal for them. they want to keep as much of the money as they can. service contracts are one of the things for example iraq has done. a company gets a certain number of dollars per barrel and the iraqi government gets the rest. a lot of companies say, those do not cut it. economically, they are not interesting enough. i caught

confirmation of bp ceo bob dudley. and this is something brendan insisted on. we have to remodel. do with hammered zinc countertops. that is like the new deal. i don't know. brendan: sometimes you accidentally give tom keene of phrase, and he hangs on to it like a bulldog. tom: let's get back to the news which has to affect us, fifa. brendan: in 2011, fifa set up an independent governance committee to look at allegations of misconduct. alexandra was on the committee and then was not. in 2013 she quit in frustration. she now runs trace international, helping multinationals comply with u.s. law on corruption. she joins us outside her home in annapolis. let's go back two years real quick. why did you quit fifa's independent governance committee? alexandra: we were running the risk of being windowdressing. we brought -- we were brought in with a lot of fanfare, and as soon as we started thinking -- as soon as we started making basic recommendations, they shut us down. brendan: how likely is any real reform? how many people need to go for reform to happen? alexandra: we are at a flashp

bob dudley said yesterday, if baghdad falls, you have a problem for the oil market.ot an issue. brendan: ryan chilcote in vienna, thank you. we will stay on opec. john joins us from riyadh with the ashmore group. what do you expect out of today's decision? john: i do not expect any changes, no surprises. business as usual. the saudis will say, listen, our policy has been successful. in november we decided not to cut production and prices have gone up, therefore we will do the same right now and we will see oil at 16 makes countries more happier than oil at 40. business as usual for now. tom: the david brooks op-ed goes to a touchstone for every american. he alludes to the idea of refunding the sunnis west of baghdad. do you suggest that saudi arabia would refund the sunnis that supported saddam hussein? john: right now there is concern about what is happening in iraq and saudi arabia is also quite alarmed with the situation there because we have effectively three-year runs, and iraq is running two of them quite successfully. the saudi's are going to be steadfast and

i asked this very question to bob dudley because he has a lot of these in the south of iraq for instanceut it to him that the is group was only 70 kilometers away from baghdad now and he said there's a lot of interest out there globally that would prevent or let further advance of i.s. get to it. do you worry about improving relations with iran if you're an oil producer or worry about worse relations with iran if you're an oil producer that isn't iran because the point here is if iran gets it's nuclear deal which someone of the biggest geopolitical issue on the planet that say dovish signal in terms of price and will mean more physical in terms of the market. so geo politics can work both ways. very interesting to see there's concern among other producers about what happens when iran comes to the table but gary ross telling us he's not concerned about that. i've been writing about the differentials between the actual price and stated production levels and what actually happens on some of these moves. you can have a look at the piece or get in touch with me on twitter as well. >> thank yo

we also heard from bob dudley but there are some bears out there, goldman sachs, city also saying look the 40 could be in the cards this year. we could see a lot more volatility before things start to change and we get back to that $60 level by the end of the year. we don't think we'll hear about a production cut but at the same time a lot of the issues is the dollar. that could drive prices down. at the same time we talk about the demand scenario as well and iranian oil. we could see 400,000 barrels a day flood the market. right now they're more factors to push us down than to push us up and that volatility could continue. >> what's been so interesting is hearing from a lot of the people in the industry doing the fracking who say that look the technology has changed and you can much more quickly bring the wells back on the fracking wells back on if prices come up to $60 which is why there's more of a lid on this. >> absolutely. a lot of the shale producers are break even so they're not losing money by producing right now. production does continue to ramp. we saw another bump up. over