Visits by top Bush administration brass to Baghdad in the past 2 weeks have been billed as strong pressure urging Maliki to make 'political progress' in his government, and to get a consensus among Kurds, Sunnis and Shiites on oil-revenue sharing so that the new oil law can be passed by the Iraqi Congress, and a key 'benchmark' made. All sounds very reasonable. You can read for yourself:
NYTimes June 11: Admiral Fallon, top American commander for the Middle East
NYT June 12: Deputy Secy of State Negroponte
NYT June 15: Defense Secy Robert Gates
But what's the other view? Two Iraqi Union leaders - the General Secretary of the Iraqi Federation of Oil Unions, and the President of the Iraqi Electrical Utility Workers Union - will be speaking in NYC tonight. I'm sure they'll have much to say about this benchmark so mightily desired by the Bush administration, and approved by the Democrats in the recent supplemental funding bill.
The Iraqis are speaking at the NYC Transport Workers Union (remember the 2005 Christmas subway and bus strike?) headquarters, 250-252 West 64th St, 6:30 to 8:30.
I hope they'll say what the diplomatic Maliki did not, at least not in so many words: The US-conceived oil law is one that Iraqis will never agree to, and the real obstacle to 'political progress' is US insistence on its passage.
You can read the draft law here on Antonia Juhasz's website. Scroll down the page and look for February 2007 draft (a download). Antonia is my client and author of THE BUSH AGENDA, and I've learned everything I know about the oil law from her. Thanks, Antonia!
I urge anyone with any background in contracts to read the exact text of this law, and tell us: If the Iraqi government was your client, would you recommend that they sign on to these provisions?
Most of the law does not deal with revenue sharing amongst Kurds, Sunnis and Shiites - far from it. (Question for experts: Does it also establish the neo-con dream of defining a corporation as a person, with individual rights?)
The law DOES allow ownership and control of Iraq's oil (the oil in the ground!) by international oil companies through 30-year term production sharing agreements. These PSAs have been refused by all the top oil producing countries in the Middle East, according toOil Change International. The law also lacks any standards for international investment of proceeds in Iraq and lacks any commitment for the foreign companies to hire Iraqi workers or share technology.
The law mandates the creation of a Federal Oil and Gas Council, (the 'FOG Council) to assist 'in creating Petroleum policies and related plans,' which council shall include 'the Chief Executives of important related petroleum companies' and not more than three 'experts in petroleum, finance and economy.' - no mention of the nationalities of these persons.
This FOG Council will have sweeping powers, with the responsibility of 'putting Federal Petroleum policies, Exploration plans, Development of Fields, and main pipeline plans in Iraq, with the right to 'approve any major changes in such plans and policies.' The Council will approve 'the types of, and changes to, model Exploration and Production contracts and 'sets the special instructions for negotiations pertaining to granting rights or signing Development and Production contracts.
This FOG Council will also rely on the assistance of a 'Panel of Independent Advisors' that 'includes oil and gas experts, Iraqis or foreigners.' The Council will decide on the number of advisers to be on this panel, who will be contracted for a year 'which can be extended.'
The law stipulates the formation of the Iraq National Oil Company, which 'shall have the right to participate as a commercial partner in international projects related to the transportation, marketing and sale of Oil and Gas. (bold emphases mine)
It shall have the right to establish in association with others affiliated companies.
The negotiation and rights teams for the Ministry of Oi, which will negotiate contracts of Exploration and Production rights, may include 'expert advisers with a distinguished international experience and reputation' - ie, foreign oil company execs.
All oil contracts are open to competitive bidding.
Holders of Exploration and Production rights can transfer any net profits from petroleum operations to outside Iraq.
And, fyi, all records must be maintained in both Arabic and English.
See in particular Articles 12, 13, 14, 15.
Then - tell us what you think of this Oil Law.
And tell us whether NYTimes reporters Michael Gordon in DC, Damian Cave in Baghdad, and Thom Shanker in Camp Victory, Iraq, should have included any discussion of the details of this law in their recent articles about US pressure on the Iraqi government.