What the War is NOT About

It's about freedom . . . and, uh, stuff like that.

Iraqis Agree on Role for Oil Majors, OPEC

LONDON (Reuters) - Iraqi exiles and senior U.S. officials agreed on Saturday that international oil companies should take a leading post-war role in reviving Iraq's oil industry, delegates to a policy meeting told Reuters.

Kind of reminds me of how the Soviets used to talk about the "leading role" of the Communist Party . .

Talks in London between Iraqi oil experts under the auspices of the State Department also agreed to recommend Baghdad stay in OPEC, though without limits on production, the Iraqi exiles said.

"Without limits on production," as in "without teeth, claws or testicles."

Foreign investment deals, most likely production-sharing contracts, with a fully-fledged Iraqi government could come between six months and two years times, he said. "Yes, that is the idea because there is no doubt the oil companies are needed," said Fadhil al-Chalabi, a former under-secretary at the Iraqi oil ministry.

No doubt. But what I want do know is this: Are the Chalabis really going to become the new royal family of Iraq?

The recommendations came from the fourth meeting of the oil and energy working group of the State Department's Future of Iraq project run by Thomas S. Warrick, Special Advisor to the U.S. Assistant of State for near eastern affairs. U.S. officials at the meeting declined to elaborate. "This is a highly-sensitive issue and we do not want any publicity," said one.

I'll bet.

Briefing papers to the meeting, obtained by Reuters, showed a clear consensus among expert opinion favoring production-sharing agreements (PSAs) to attract the oil majors. Production-sharing is the type of deal favored by the oil industry because it normally guarantees companies a healthy profit margin, even at low world oil prices. Alternative royalty schemes are weighted toward government revenues and penalize investors at low prices."

And who says imperialism doesn't pay?

Billmon

Posted April 05, 2003 10:26 AM | Comments (27)