Posts Tagged ‘Platform’

Private Eye on the Western Firms Seeking to Grasp the Iraqi Oil Fields

March 3, 2016

Private Eye in their issue of 9th 22nd December 2005 also ran an article on the ‘Production Sharing Agreements’ issued to British and other western firms, which effectively handed control of the Iraqi oil fields to them, taking millions from the Iraqis themselves. All under the pretext that it’s helping to rebuild the economy of the invasion.

Rebuilding Iraq
I’m Oil Right, Jack

Good to see that Britain is doing its bit to “assist” Iraq – and help private western oil companies bolster their already massive profits at the same time.

As is well known, the United States is putting pressure on Iraq’s fragile government to accept “production sharing agreements”, or PSAs, to develop the Iraqi oil fields. These PSAs, previously unknown in the big middle eastern oilfields, will mean vast profits for western oil giants. Indeed, according to a report from the campaign group Platform, War on Want and the New Economics Foundation, western companies could make returns on investment of between 42 percent and 162 percent, while Iraq itself could lose some $100 bn by agreeing to the PSAs.

While the pressure from the US for PSAs is well known, it now emerges that Britain’s own Foreign Office is equally involved in lobbying the Iraqis. It is doing so through a little known but powerful business group called the International Tax and Investment Centre (ITIC). Originally formed to help business get the right laws to “encourage” investment in the former Soviet Union, ITIC is now central to the oil industry’s efforts in Iraq. An Anglo-American outfit jointly chaired by a senior US businessman and the former Tory trade minister Lord Walker, it is funded by the likes of BP, Shell and Exxon.

ITIC began its “Iraq project” in July 2003 and claims it did so “following several requests from advisors from western governments and international organizations for private sector input as they prepare their technical assistance programs for Iraq”. Among those keen to hear ITIC’s advice were the World Bank and the British government.

Iraqi ministers were presented with an ITIC report recommending that their oil industry entre into PSAs with western firms at meetings organized by the IMF and World Bank in Beirut earlier this year. At the same time ITIC reported a “meeting held with UK Treasury and Foreign Office to discuss coordination and cooperation of Full Report presentation”. In other words, two British government departments became agents for ITIC, helping it persuade the Iraqis to accept PSAs.

The Foreign Office denies it has been involved in specific lobbying on Iraqi oil, but documents released to Platform under the Freedom of Information Act show the true extent to which the British government has represented ITIC. The Foreign Office presented Iraqi oil ministers with a ‘code of practice for the Iraqi oil industry” last autumn. This code was supposed to persuade the oil ministers they needed to have open, transparent deals to avoid corruption. However, the FO documents quoted extensively from ITIC’s own Iraq report – before it was published and without acknowledging that the report was itself funded by western oil firms.

The FO document also goes beyond its brief and says that “Iraq would need to engage with the international oil companies to provide appropriate levels of foreign direct investment” to develop its oil. Other solutions that do not hand such profits to western oil firms – like borrowing money and directing its own oil exploitation – are for some reason not discussed.

In addition the British government has, via the Foreign Office, paid £147,700 to fund advisers to the Iraqi oil ministry, including two BP executive, Terry Adams and Bob Morgan.

This adds more evidence to the revelations that the invasion of Iraq was never about protecting us from al-Qaeda or terrorism, but simply a cynical strategy to steal that nation’s oil.

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