> [from the Institute for Public Accuracy]
>
> Tuesday, November 22, 2005
>
> "Crude Designs": New Report Charges Big Oil "Rip-Off" of Iraq
>
> Interviews Available
>
> GREG MUTTITT, 011-44-20-7403-3738, mobile: 011-44-797-058-9611,
> greg.muttitt at pobox.com, http://www.CrudeDesigns.org
> The British group PLATFORM has just released a report: "Crude
> Designs: The Rip-Off of Iraq's Oil Wealth." Among the group's
> findings:
> * "Current Iraqi oil policy will allocate the development of at
> least 64 percent of Iraq's reserves to foreign oil companies."
> * "The estimated cost to Iraq over the life of the new oil
> contracts is $74 to $194 billion, compared with leaving oil
> development in public hands."
> * "The contracts would guarantee massive profits to foreign
> companies, with rates of return of 42 to 162 percent. The kinds of
> contracts that will provide these returns are known as production
> sharing agreements (PSAs). PSAs have been heavily promoted by the U.S.
> government and oil majors and have the backing of senior figures in
> the Iraqi Oil Ministry. However PSAs last for 25-40 years, are usually
> secret and prevent governments from later altering the terms of the
> contract."
> "Crude Designs" author and lead researcher, Greg Muttitt, said
> today: "The form of contracts being promoted is the most expensive and
> undemocratic option available. Iraq's oil should be for the benefit of
> the Iraqi people, not foreign oil companies."
> He continued: "The new Iraqi constitution opened the way for much
> greater foreign involvement in Iraq's oilfields. Negotiations with oil
> companies are already underway, ahead of elections in December and
> prior to the passing of a new Petroleum Law. This report calls for
> full and open debate in Iraq about the way oil resources are to be
> developed, not 30-year deals negotiated behind closed doors."
> Muttitt added: "Experience in other countries shows that oil
> companies generally get the upper hand in PSA negotiations with
> governments. The companies will inevitably use Iraq's current
> instability to push for highly advantageous terms and lock Iraq to
> those terms for decades."
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Mike Ruppert wrote extensively on the Iraqi national oil industry intrigues in Crossing The Rubicon, I'll brush up tonight on the flight to ATL if they let me take the book on the plane.
Leigh www.leighm.net
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