Iraq poised to hand control of oil fields to foreign firms

[non sociopath skin]

Heather Stewart, economics correspondent

Sunday February 25, 2007

Observer

Baghdad is under pressure from Britain and the US to pass an oil law which would hand long-term control of Iraq's energy assets to foreign multinationals, according to campaigners.

Iraqi trades unions have called for the country's oil reserves - the second-largest in the world - to be kept in public hands. But a leaked draft of the oil law, seen by The Observer, would see the government sign away the right to exploit its untapped fields in so-called exploration contracts, which could then be extended for more than 30 years.

Foreign Office minister Kim Howells has admitted that the government has discussed the wording of the Iraqi law with Britain's oil giants.
In a written answer to a parliamentary question, from Labour's Alan Simpson, Howells said: 'These exchanges have included discussion of Iraq's evolving hydrocarbons legislation where British international oil companies have valuable perspectives to offer based on their experience in other countries.' The talks had covered 'the range of contract types which Iraq is considering'.

Control of oil is an explosive political issue in Iraq. Hasan Jumah Awwad al-Asadi, leader of the country's oil workers' union formed after the invasion in 2003, warned this month: 'History will not forgive those who play recklessly with the wealth and destiny of a people.'

With much of the country on the brink of civil war, and a fractious government in Baghdad, campaigners say Iraq is in a poor position to negotiate with foreign oil firms. 'Iraq is under occupation and its people are facing relentless insecurity and crippling poverty. Yet, with the support of our government, multinationals are poised to take control of Iraq's oil wealth,' said Ruth Tanner, senior campaigner at War On Want. Text

Rest at: http://observer.guardian.co.uk/business/story/0,,2020560,00.html

Yeah, yeah, guys - we all know it wasn't REALLY about oil ...

The Skin

[dazzlerazzle]

1. who will provide protection?

If Brit firms are going to extract the oil, then legislation should be introduced mandating that they provide 100,000 troops to guard the oil fields. I doubt anything in this agreement will satisfy every iraqi.

[marmar]

2. But really, it wasn't about the oil!

:sarcasm: :argh: