Another article on the Iraq Oil Law

Note that Khalilzad brokered the deal. Apparently the US has made reaching a deal a condition of aid. Notice that no details are available only the spoon feeding of the press by officials of the Iraqi govt. A crucial bill was not available to the press nor even to the parliamentarians. Of course the bill was leaked over a week ago to deafening silence from the world mainstream press with nary a single commentary as far as I can find. Only in the blogosphere you say. A pity! I suggested to the CBC that they make the law a story. No answer. Of course now that the world press is abuzz with the story they may chime in with something.


Christian Berthelsen and Tina Susman in Baghdad
February 28, 2007

AFTER months of negotiations over the postwar spoils of Iraq's most valuable natural resource, the Government has approved a draft plan to increase oil production and share the proceeds.

The agreement on the terms by Iraq's cabinet, announced on Monday, was touted as a breakthrough. It must still be approved by the parliament, but because all of Iraq's vested ethnic and regional interests are represented in the cabinet, the deal was viewed as having overcome a significant hurdle.

The US has long wanted to capitalise on Iraq's oil resources, as a means of paying for the country's reconstruction since the 2003 invasion. Oil's importance was reiterated in the Iraq Study Group report released in December.

The agreement not only will open up Iraq's oil industry to international investment - a bonanza for foreign oil companies - but also produce revenue for a nation badly in need of cash to finance its reconstruction.

Iraq's oil riches predominantly lie in the Kurdish-controlled north and the Shiite-controlled south. Reaching an agreement required both parties to be willing to share their bounty with Sunnis in the middle - a particularly painful prospect as Sunnis under Saddam Hussein controlled the entire government.

In addition, Kurds, who are pushing for a referendum on withdrawal from Iraq, wanted more control to strike contracts with foreign firms and spend profits as they see fit.

The statement from the office of the US ambassador, Zalmay Khalilzad, who reportedly brokered the deal, said all revenues from oil sales will go into a single national account, but all regions and provinces will have a seat on an energy policy-making body, and provinces will receive shares of revenue and have control over how they spend it.

It was unclear what concessions led to the compromise, and the precise terms of the deal were not immediately available.

Speaking later to reporters, the Prime Minister, Nouri al-Maliki, said: "The benefits of this wealth will form a firm pillar for the unity of Iraqis and consolidate their social structure."

Iraqi MPs were cautious about embracing the plan. Still, most agreed that a cabinet compromise was a good sign.

Los Angeles Times, Reuters