Iraqi Oil Law

In a March 2007 op-ed piece in the New York Times, Antonia Juhasz pointed out that, under the Iraqi Hydrocarbon Law currently slated for passage, "The Iraq National Oil Company would have exclusive control of just 17 of Iraq’s 80 known oil fields, leaving two-thirds of known — and all of its as yet undiscovered — fields open to foreign control."

The law, which can be read here, is largely a blueprint for the privatization of Iraqi oil.

Back in 2004, a Shell representative told the UK Guardian that "We are interested in building a long term relationship with Iraqis."

They will not be alone. As the UK Independent observed in January, the new Iraqi oil law will give Exxon, BP and Shell 30-year contracts to develop Iraqi oil.

"Oil industry executives and analysts say the law, which would permit Western companies to pocket up to three-quarters of profits in the early years, is the only way to get Iraq's oil industry back on its feet after years of sanctions, war and loss of expertise. But it will operate through "production-sharing agreements" (or PSAs) which are highly unusual in the Middle East, where the oil industry in Saudi Arabia and Iran, the world's two largest producers, is state controlled."