Iraq’s oil output goes under the hammer

IRAQ’S oil wealth went on offer to multinational oil companies this week, as oil minister Hussain al-Shahristani visited London to offer contracts for oilfields that will last for up to 20 years.

by Tribune Web Editor
Friday, October 17th, 2008

by René Lavanchy

IRAQ’S oil wealth went on offer to multinational oil companies this week, as oil minister Hussain al-Shahristani visited London to offer contracts for oilfields that will last for up to 20 years.

Shell, BP and ExxonMobil are among the 35 shortlisted companies who will be bidding over the next six months to run eight oil and gas fields, believed to contain 40 per cent of Iraq’s oil reserves.

The Iraqi government expects them to boost production.

But activist groups are alarmed at the length of the contracts, together with the Iraqi government’s insistence that it will honour the spirit of its controversial draft oil law, which has still not been accepted by the parliament.

Ewa Jasiewicz of Hands Off Iraqi Oil, which held a protest in London on the eve of the meeting, said: “You’re talking about Iraq’s economy being mortgaged to the interests of those companies”.

She also complained that the oil ministry has only revealed its draft contracts to the companies on its shortlist.

Iraq’s draft oil law, whose implementation the Bush administration is publicly pushing for, offers foreign firms exclusive rights over newly-discovered oilfields and allows them to be controlled by a firm for over 30 years.

An Iraqi Embassy spokes-person told Tribune: “These contracts will be within the [draft] hydrocarbon law. The companies will provide a service and that will be compensated for by oil or cash.” They declined to comment on the “technical details” of the contracts, but confirmed they will run for up to 20 years.

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  • http://www.hoio.org.uk yasar M.S. Hasan

    the government is rushing into such deals to earn Mr Bush some browne points since, the work of iraqis and memebers of HOIO to stop the law being passed in parliment have resulted in such desparate measures.

    Having had direct family connection and my father was involved in law 80 which started the nationalisation of the oil.

    it is a pity that such a government allows such unfair practices to go on, now there is a global recession it puts iraq in very strong positions with negotiations for the future and in the abscense of plan for rebuilding and using the funds it is best to leave oil undergound until such time a time a popular government representing the majority of views without foreign influence can use the funds generated to create work for iraqis and specially the highly skilled iraqi oil workers who fought the multi-nationals to secure iraqi oil for the future generations.

  • http://www.hoio.org.uk yasar M.S. Hasan

    the government is rushing into such deals to earn Mr Bush some browne points since, the work of iraqis and memebers of HOIO to stop the law being passed in parliment have resulted in such desparate measures.

    Having had direct family connection and my father was involved in law 80 which started the nationalisation of the oil.

    it is a pity that such a government allows such unfair practices to go on, now there is a global recession it puts iraq in very strong positions with negotiations for the future and in the abscense of plan for rebuilding and using the funds it is best to leave oil undergound until such time a time a popular government representing the majority of views without foreign influence can use the funds generated to create work for iraqis and specially the highly skilled iraqi oil workers who fought the multi-nationals to secure iraqi oil for the future generations.

  • Robert

    Iraq is now American get use to it.

  • Robert

    Iraq is now American get use to it.