Since 1972 Iraq’s oil has been state owned, which means no private corporations could invest in the oil for profit. It looks like that is all about to change. And who will be investing? I’ll give you one guess? Corporate executives of the U.S. and British foreign oil companies, namely,BP and Shell in Britain and Exxon and Chevron in the US, have already entered Iraq to lobby on behalf of a new law in the Iraqi parliament that would allow foreign companies to invest in Iraq’s oil. The companies will be able to sign contracts to take oil from Iraq for the next 30 years.
According to Gregg Mottitt of Platform a human rights and environmental organization, “The draft went to the US government and major oil companies in July, and to the International Monetary Fund in September. Last month I met a group of 20 Iraqi MPs in Jordan, and I asked them how many had seen the legislation. Only one had.”
The following is from an article in today’s UK The Independent:
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A 40-page document leaked to the ‘IoS’ sets out the legal framework for the Iraqi government to sign production- sharing agreement contracts with foreign companies to develop its vast oil reserves.
The paper lays the groundwork for profit-sharing partnerships between the Iraqi government and international oil companies. It also lays out the basis for co-operation between Iraq’s federal government and its regional authorities to develop oil fields.
The document adds that oil companies will enjoy contracts to extract Iraqi oil for up to 30 years, and stresses that Iraq needs foreign investment for the “quick and substantial funding of reconstruction and modernisation projects”.
It concludes that the proposed hydrocarbon law is of “great importance to the whole nation as well as to all investors in the sector” and that the proceeds from foreign investment in Iraq’s oilfields would, in the long term, decrease dependence on oil and gas revenues.
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Before the US-led invasion of Iraq oil accounted for 70 percent of Iraq’s economy. It is no doubt their most important resource and their only hope for an economic rebuilding post-war. Many US and UK politicians have long denied that this invasion had anything to do with oil.
“Oil revenues, which people falsely claim that we want to seize, should be put in a trust fund for the Iraqi people”
Tony Blair; Moving motion for war with Iraq, 18 March 2003
“Oil belongs to the Iraqi people; the government has… to be good stewards of that valuable asset “
George Bush; Press conference, 14 June 2006
“The oil of the Iraqi people… is their wealth. We did not [invade Iraq] for oil “
Colin Powell; Press briefing, 10 July 2003
“Oil revenues of Iraq could bring between $50bn and $100bn in two or three years… [Iraq] can finance its reconstruction”
Paul Wolfowitz; Deputy Defense Secretary, March 2003
“By 2010 we will need [a further] 50 million barrels a day. The Middle East, with two-thirds of the oil and the lowest cost, is still where the prize lies”
Dick Cheney; US Vice-President, 1999
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