EXCLUSIVE - Iraqi Oil Ministry and Shell Oil Secret Agreement Leaked

[kpete]

Shell - Ministry of Oil Secret Agreement (English)
http://www.al-ghad.org/wordpress/wp-content/uploads/2008/11/shell-hoa-english.pdf

Al-Ghad is publishing the confidential text (in English), of an agreement signed by the Iraqi Ministry of Oil and Shell. The Agreement is more important and far reaching than was expected. The scope of the agreement covers the whole of gas sources in South Iraq. It gives the impression that it would be a model for further control and exploitation of the whole oil and gas of the country.

This confidential gas agreement comes at a time of vicious American efforts to force through the Status of Forces (SOFA) military agreement on the Iraqi Parliament. It shows the extents to which the US and its lackeys in the Iraqi government will go to deprive occupied Iraq not only of its sovereignty but its extensive natural resources as well.

It is our hope to publish other documents and opinions in the near future.

http://www.al-ghad.org/2008/11/22/shell-iraq-oil-agreement/

[underpants]

1. South Iraq = Iran

We invaded a country and Iran is getting the most benefit out of it

Let's not kid ourselves

[ThePowerofWill]

2. I'll give it a K&R because this is just wrong, and folks need to see it. (NT)

[SammyWinstonJack]

3. K&R

[Turbineguy]

4. Well, let's see

I know it's sometimes unpopular around here to look at what an oil company does and say something positive about it. But in the interest of accurate information and fair debate, we'll leave the ideology-trumps-reason for the repubs. So here goes

Iraq has a controlling interest of 51%. Shell has a minority interest of 49%. Each pays its share of costs according to its interests (51/49). However, each pays its own employees and third party contractors separately and additionally. The contract is for 25 years.

Iraq gets a gross tax of 15% off the top.

That means Iraq gets 57.4% of the proceeds and Shell gets 42.6%.

That's what it looks like. What is not clear is the production sharing percentages. They do not come as as simple percentage but reflect and are linked to the difference in prices for the various products. This is a better deal for Iraq as Shell could really clean up by producing expensive products which they could then sell. It looks like the first priority is to supply natural gas (and its products) to facilities for to the production of gas and oil products. Gas Condensate fetches higher prices than oil, for example. It appears thereafter that the Interior Ministry has dibs on gas needed for other domestic uses (since this is nearly raw gas it would be relatively cheap) and finally the rest can be processed into (high revenue) products for exports (such as Shell's Gas-to-Liquids projects).

Following the debacle that Shell had with over-stated reserves the company has overhauled its entire business practice and set out very specific requirements for its corporate behavior.

Realistically, this is not a bad deal for Iraq as it gets the Iraqi's nearly dysfunctional production and infrastructure system working quicker than they could accomplish on their own. The Iraqis also tap directly into Shell's world-wide distribution network. The Iraqis only have to pay their part for what gets built in Iraq. By dealing with one firm instead of many the Iraqis can police things better. I don't understand how this deprives them of their sovreignty.

It could indeed be a model for further exploitation, but only if it works. And since the Iraqis are in majority control, it will be for them to decide.

As an added note: When Saddam Hussein was running things he took 15% off the top of Oil and Gas sales as a personal commission.

[DLnyc]

5. Or,

Shell pays a couple of officials 10 million each and gets a 42% ownership of something that belongs 100% to the Iraqi people.

Spin it how you will, other countries pay firms to pump the oil, but retain ownership of their own natural resources. Of course, they didn't have to negotiate at the point of a gun.