Friday, November 25, 2005

REUTERS: How big OIL will steal Iraq's wealth

This is somewhat technical, but the gist of it is that oil companies are still working on ways to screw Iraq.

The original plan was to privatize the oil rights and sell them off, completely cutting Iraqis out of the deal. This new proposal is more in line with how oil companies and other multi-national corporations screw the developing world.

If anybody was really concerned about fighting terrorism, they wouldn't do stuff like this.

But they aren't.

For more on Iraq's oil, see:



Big oil has crude designs on Iraq wealth - report
Tue Nov 22, 2005 5:51 AM GMT

Big oil firms may rob Iraq of billions and grab control of its oilfields unless ordinary Iraqis can have a greater say in how their country's riches are tapped, U.S. and British campaigners said on Tuesday.

Big oil is being lured by the Production Sharing Agreement (PSA), promoted by Washington and London, which gives them huge returns on investment, but deprives Iraq of up to $194 billion (113 billion pounds), according to "Crude Designs: The rip-off of Iraq's oil wealth".

"Under the influence of the U.S. and UK, powerful politicians and technocrats in the Iraqi oil ministry are pushing to hand all Iraq's undeveloped fields to multinational oil companies, to be developed under production sharing agreements," said Greg Muttitt, the report's author.

For international oilmen, deprived access to vast Iraqi reserves for decades, long-term PSAs offer the ability to book reserves, protection from future adverse legislation and healthy profits during low oil prices.

If only the contracts were as lucrative for average Iraqis, still suspicious that the oil was the motive behind the U.S.-led war in 2003, said the report.

The massive loss from PSAs would amount to $2,800 to $7,400 per Iraqi adult over the 30-year lifespan of a typical deal, it said. By comparison, Iraqi GDP is now only $2,100 per person.


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