(Posted in General Discussion
Sat May 12th 2007, 04:02 AM)
The UPI is reporting that the 26,000 member Iraqi Federation of Oil Unions is set to strike if the Iraqi Parliament buckles under to US pressure and passes the so-called hydrocarbon law pending before Parliament.
http://www.upi.com/Energy/Briefing/2007/05... /
BAGHDAD, May. 8 (UPI) -- Most of Iraq's oil production and all of its exports are likely to stop Thursday as its oil union threatens to strike in protest of the draft oil law.
"The central government must be in total ownership and complete control of production and the export of oil," said Imad Abdul-Hussain, federation deputy chair of the Iraq Federation of Oil Unions, in a statement released Tuesday. The union represents more than 26,000 workers.
The law governing investment and development of Iraq's 115 billion barrels of proven oil reserves and 110 trillion cubic feet of natural gas is still stalled in negotiations between the central government and the Kurdistan Regional Government.
While only a small portion has even passed through the Council of Ministers, let alone through the full Parliament, one of the possible types of contracts to be signed with foreign investors is production-sharing agreements. This is the type of deal the unions have come out against, fearing too much foreign ownership in a sector that has been nationalized for more than 30 years.<snip>
Production Sharing Agreements (PSAs), as envisioned in the proposed hydrocarbon legislation would throw open virtually all of Iraq's oil reserves to development by multinational oil companies--in sharp contrast to the state-owned oil programs common throughout the Middle East and elsewhere. Under the PSAs, the foreign owned companies would be guaranteed full cost recovery and a substantial profit from exploitation of Iraqi oil fields. The Iraqi government would only be entitled to residual profits, if any, after the oil companies' profits have been realized.
Many have speculated that Vice President Cheney's recent trip to the Green Zone was a last ditch attempt to jump start passage of the PSA legislation, which has long been a prime goal of his secretive 2001 Energy Task Force.
The resurgence of the Iraqi Federation of Oil Unions, and their vocal opposition to the hydrocarbons law, must come as a severe shock to Bush Administration officials who had considered the passage of the PSA legislation to be "in the bag" until the Iraqi Parliament abruptly left Baghdad this week for a two month summer recess.
OP's note: One can't help but compare these brave voices in the Iraqi IFOU with rebellious workers in the shipyards of Gdansk Poland thirty years ago who, under the leadership of Lech Walesa, began the process of unraveling the Soviet Union.
Solidarnosc!
http://en.wikipedia.org/wiki/Solidarity