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Iraq: The carve-up begins
Tom Burgis

The London Line
Thursday 23 June 2005

As the costs of the Iraq occupation spiral, British and American oil
companies meet in secret next week to carve up the country's oil reserves
for themselves. Tom Burgis reports


The Iraq war has so far cost America and Britain £105billion. But the
financial clawback is gathering pace as British and American oil giants
work out how to get their hands on the estimated £3trillion worth of oil.

Executives from BP, Shell, Exxon Mobil and Halliburton, Dick Cheney's old
firm, are expected to congregate at the Paddington Hilton for a two-day
chinwag with top-level officials from Iraq's oil ministry. The gathering,
sponsored by the British Government, is being described as the "premier
event" for those with designs on Iraqi oil, and will go ahead despite
opposition from Iraqi oil workers, who fear their livelihoods are being
flogged to foreigners. The Met will be on hand to secure the venue ahead
of the conference.

"This is a networking opportunity for UK businesses involved in Iraqi
oil," explained Dr Hussain Rabia, managing director of the consultancy
Entrac Petroleum Ltd. "We have the moral support of the UK government.
They're bringing the guys over from Iraq, offering them visas. We expect
all the big oil companies to be there," he said.

Delegate numbers are described as "confidential". Shell spokesman Simon
Buerk would not confirm that a representative of the company would be
attending, but said he "wouldn't be at all surprised if they were".

"We aspire to establish a long-term presence in Iraq," he said. "We have
been helping the [Iraqi] Ministry of Oil and engineers with training."

Those who have purchased their £1,200 tickets can expect access to
executives from Iraq's oil ministry, including Salem Razoky, the director
general of exploration.

But Iraqi oil workers are furious about the conference. "The second phase
of the war will be started by this conference carving up the industry,"
said an outraged Hasan Juma'a, head of the Iraqi General Union of Oil
Employees. "It is about giving shares of Iraq to the countries who invaded
it - they get a piece of the action as a reward. The British government
will back this action in order to pay its debt in Iraq."

Hasan, who represents 23,000 skilled oil workers, fears that deals struck
at the conference will see profits from Iraq's massive oil reserves - the
second richest in the world - lining the pockets of multinational
corporations at the expense of the Iraqi people.

Previous form suggests his concerns are well founded. Under the initial
wage table drawn up by Paul Bremer's provisional Baghdad government in
September 2003, oil workers were to receive a minimum monthly pay packet
of £25. After a threatened union strike, it was raised to £38. And, Hasan
insists, "Iraqi oil workers are good enough to rebuild without any need of
help. "

Greg Muttitt, a researcher with Platform, an independent environmental
think thank, agrees. "The decisions on how to carve up Iraq are being made
behind closed doors in Washington, London and Baghdad.

"This conference is a key part of the plan to help multinational companies
get stuck in once those arrangements are in place. It's a corporate
feeding frenzy - they're not writing the recipes, they're tucking in their
napkins."

Yahia Said, an Iraqi research fellow in global governance at the London
School of Economics, commented:

"Iraq's oil is very cheap to extract. In the lack of transparency and with
Iraq under occupation, people suspect oil companies are up to foul play.
But those companies wouldn't yet dare sign a contract under the present
government because it lacks legitimacy. But the oil companies are eyeing
each other - this conference is like a dating game."

As such, a spokesperson for British governmental body UK Trade &
Investment insisted that "no contracts will be awarded" at the conference.
"Although we believe that British and other companies can play a key role,
it will be up to the Iraqis, through their elected representatives to
decide whether there is a role for them or not."

But the British government's position is in line with that of conference
organisers, who point to Iraq's current oil output, which is stalled at
1.8million barrels per day, less than a third of what it could be.

"We all want to reconstruct Iraq," argued Rabia. "You can have all the
demos you want, but 70 per cent of people in my country don't have
sanitation. It's 45 degrees there now. I've listened to a lot of people
and there's no way you can reconstruct without people from the UK and the
US, and their money."

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