Sunday, January 14, 2007

The Other Surge: Oil Profits Out of Iraq

The timing of GWBs latest twist in Iraq makes more sense when one considers legislation about to be introduced (rammed through) the Iraqi parliment. This legislation refers to several unusual points including "production sharing agreements" which allow foreign companies access to Iraqi oil for upto 30 years, slice of the profits while costs are recovered amounting to 60 to 70 per cent, and 20 per cent afterwards. Iraq's ability to dispute agreements would be limited to international arbitration rather than Iraqi courts. The agreement preserves the appearance of national sovereignity while giving control of the revenue stream and development to the Western ( American and European) oil Goliaths.

Much in the manner of the U.S. Part D medicare benefit this jewel of legislation was developed by those who will benefit most, notably groups representing U.S. financial and petroleum interests. In this case a spin off of KPMG, BearingPoint , which so far has made 240 million on its Iraq work.

If this doesn't unite the Shias and Sunnis I don't know what will.


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