THE RACE FOR IRAQ'S RESOURCES

[kpete]

THE RACE FOR IRAQ'S RESOURCES
Will Iraq's Oil Blessing Become a Curse?
By Joshua Gallu in Berlin

The Iraqi government is considering a new oil law that could give private oil companies greater control over its vast reserves. In light of rampant violence and shaky democratic institutions, many fear the law is being pushed through hastily by special interests behind closed doors.

............

That's why some fear Iraq is setting its course too hastily and in too much secrecy. Greg Muttitt of social and environmental NGO Platform London told SPIEGEL ONLINE: "I was recently at a meeting of Iraqi MPs (members of parliament) and asked them how many of them had seen the law. Out of twenty, only one MP had seen it."

Last week, the Iraqi Labor Union Leadership suggested the same. "The Iraqi people refuse to allow the future of their oil to be decided behind closed doors," their statement reads. "(T)he occupier seeks and wishes to secure themselves energy resources at a time when the Iraqi people are seeking to determine their own future while still under conditions of occupation."

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Critics say the US is leaning on the IMF and World Bank to push Iraq into signing oil contracts fast, so western firms can secure the oil before Chinese, Indian and Russian firms do. An IMF official told SPIEGEL ONLINE that "passage of a hydrocarbon law is not a condition for financial support from the IMF." Nevertheless, Iraqi authorities found it necessary to promise the IMF a draft petroleum law by the end of this year -- this in the same letter that says "we will take whatever steps are necessary to ensure that the program remains on track."

more at:
http://www.spiegel.de/international/0,1518,456212,00.html

[4nic8em]

1. How enlightening...

All this time I thought we were fighting them over there because they hate us for our freedoms. Let the truth be told.

[Junkdrawer]

2. K&R

[Junkdrawer]

8. ,

[Junkdrawer]

9. .

[TahitiNut]

3. It's always been about corporate privateers ... today's pirates.

The global corporatists tolerate no national 'ownership' and work to topple regimes that don't enforce such private entitlements. Oil. Water. Timber. Minerals. All of it. Even the very land itself over which the pipelines are built. (ANWR anyone?)

[Junkdrawer]

4. Yet another way Big Oil wins through chaos...

Controversial contracts

Nevertheless, the draft law lays the ground work for private oil companies to take large stakes in Iraq's oil. The new law would allow the controversial partnerships known as 'production sharing agreements' (PSA). Oil companies favor PSAs, because they limit the risk of cost overruns while giving greater potential for profit. PSAs tend to be massive legal agreements, designed to replace a weak or missing legal framework -- which is helpful for a country like Iraq that lacks the laws needed to attract investment.

It's also dangerous. It means governments are legally committing themselves to oil deals that they've negotiated from a position of weakness. And, the contracts typically span decades. Companies argue they need long-term legal security to justify huge investments in risky countries; the current draft recommends 15 to 20 years.

Nevertheless, Iraq carries little exploratory risk -- OPEC estimates Iraq sits atop some 115 billion barrels of reserves and only a small fraction of its oil fields are in use. By signing oil deals with Iraq, oil companies could account for those reserves in their books without setting foot in the country -- that alone is enough to boost the company's stock. And, by negotiating deals while Iraq is unstable, companies could lock in a risk premium that may be much lower five or ten years from now.

Without drastic improvements in the security situation, companies are unlikely to begin operations anytime soon. "The legislation is not a golden bullet," one industry source told SPIEGEL ONLINE. Western oil companies are happy to receive Iraqi officials in their European headquarters, but are not keen to return the visit. Firms from China, Russia and India, however, are less intimidated by Iraq's precarious security situation and actively court Baghdad on its home turf.

....

[madokie]

5. and I wondered what wolf and the world bank connection was, sheeeze

what a bunch of sleeze balls this bush*/cheney crew is. we're talking criminals on the highest order here

[Junkdrawer]

6. And they can't redeem those contracts without regime change in Iran...

An THAT is what the events of the next two years will be all about. Watch.

[Jcrowley]

7. It's all in the public record

POLICY DELIVERED FROM AMERICA TO IRAQ

Production sharing agreements have been heavily promoted by oil companies and by the US Administration.

The use of PSAs in Iraq was proposed by the Future of Iraq project, the US State Department’s planning mechanism, prior to the 2003 invasion. These proposals were subsequently developed by the Coalition Provisional Authority, by the Iraq Interim Government and by the current Transitional Government. The Iraqi Constitution also opens the door to foreign companies, albeit in legally vague terms.

Of course, what ultimately happens will depend on the outcome of the elections, on the broader political and security situation and on negotiations with oil companies. However, the pressure for Iraq to adopt PSAs is substantial. The current government is fast-tracking the process and is already negotiating contracts with oil companies in parallel with the constitutional process, elections and passage of a Petroleum Law.

The Constitution also suggests a decentralisation of authority over oil contracts, from the national level to Iraq’s regions. If implemented, the regions would have weaker bargaining power than a national government, leading to poorer terms for Iraq in any deal with oil companies.

It's all right here:
http://www.globalpolicy.org/security/oil/2005/crudedesigns.htm

Shell’s head of Exploration & Production, speaking at a conference in 2003, made the case for PSAs:

“...international oil companies can make an ongoing contribution to the region ... However, in order to secure that investment, we will need some assurance of future income and, in particular, a supportive contractual framework. There are a number of models which can achieve these ends. One option is the greater use of production sharing agreements, which have proved very effective in achieving an appropriate balance of incentives between Governments and oil companies. And they ensure a fair distribution of the value of a resource while providing the long term assurance which is necessary to secure the capital investment needed for energy projects.”

Walter van der Vijver, speech to ECSSR conference, 'A new era for international oil companies in the Gulf: opportunities and challenges', Abu Dhabi, 19 October 2003

[Disturbed]

10. Who is holding the Colonization of Iraq back?

The Sunni Insurgency, al Sistani and al Sadr.

[Jcrowley]

12. Shiites stick together in Iraq

Shiites stick together in Iraq: Cleric rejects plan to isolate extremists, ask for al-Sadr help
MOLLY HENNESSY-FISKE and SAAD FAKHRILDEEN
Los Angeles Times

Shiites stick together in Iraq: Cleric rejects plan to isolate extremists, ask for al-Sadr help

NAJAF, Iraq - One of Iraq's most influential Shiite clerics rejected a U.S.-backed proposal to isolate Shiite extremists in the national government, saying the country should govern itself with the help of anti-U.S. firebrand Muqtada al-Sadr, according to politicians who spoke with the cleric Saturday.

Shiite politicians met with Grand Ayatollah Ali al-Sistani in this holy Shiite city, and then said they had thrown their support behind al-Sadr, who demands a withdrawal of U.S. troops from Iraq rather than the temporary increase under consideration in Washington.

"The Sadr movement is part of Iraqi affairs," said Haider Abadi, a leader of Shiite Prime Minister Nouri al-Maliki's Dawa party. "We won't allow others to interfere to weaken any Iraqi political movement."

http://www.bradenton.com/mld/bradenton/news/local/16308206.htm

[GreenTea]

11. Hugo Chavez is helping countries in our hemisphere kick the fucking IMF & WB

out for good, Chavez is helping various Latin American counties pay off their debts to the IMF pigs (Another reason BushCo & republicans hate Chavez). The fucking leeches, insects of the IMF & World Bank prey on ALL the poor countries in the world to keep them in debt in order to steal their resources and control the countries and it's people...Death to the IMF & WB!

VIVA HUGO CHAVEZ!!!!!