Prometheus 6

I wonder how close it is to what Cheney's energy task force was looking for.

Group: Cheney Task Force Eyed on Iraq Oil
By H. Josef Hebert
Associated Press

Friday 18 July 2003

WASHINGTON -- Vice President Dick Cheney's energy task force appeared to have some interest in early 2001 in Iraq's oil industry, including which foreign companies were pursuing business there, according to documents released Friday by a private watchdog group.

Judicial Watch, a conservative legal group, obtained a batch of task force-related Commerce Department papers that included a detailed map of Iraq's oil fields, terminals and pipelines as well as a list entitled "Foreign Suitors of Iraqi Oilfield Contracts."

The papers also included a detailed map of oil fields and pipelines in Saudi Arabia and in the United Arab Emirates and a list of oil and gas development projects in those two countries.

Iraqi Draft Law on Oil Revenue Appears Close
By JAMES GLANZ

BAGHDAD, Jan. 19 — After months of tense bargaining, a cabinet-level committee has produced a draft law governing Iraq’s vast oil fields that would distribute all revenues through the federal government and grant Baghdad wide powers in exploration, development and awarding of major international contracts.

The draft, described today by several members of the committee, could still change and must be approved by the Iraqi cabinet and Parliament before it becomes law. Negotiations have veered off track unexpectedly in the past, and members of the political and sectarian groups with interest in the law could still object as they read it more closely.

But if approved in anything close to its present form, the law would appear to settle a longstanding debate over whether the oil industry and its revenues should be overseen by the central government or the regions dominated by Kurds in the north and Shiite Arabs in the south, where the richest oil fields are located.

The draft comes down firmly on the side of central oversight, a decision that advocates for Iraq’s unity are likely to trumpet as a triumph. Because control of the oil industry touches so directly on the interests of all Iraq’s warring sectarian groups, and therefore the future of the country, the proposed law has been described as the most critical piece of pending legislation.

“This will give us the basis of the unity of this country,” said Ali Baban, the Iraqi planning minister and a member of the Sunni-dominated Iraqi Islamic Party who serves on the negotiating committee. “We pushed for the center in Baghdad, but we didn’t neglect the Kurds and other regions,” Mr. Baban said.

Negotiators said that the final weeks of wrangling on the draft focused on a federal committee that will be set up to review the oil contracts. Kurdish, and to some extent Shiite, parties wanted to maintain regional control over the contracts, while Sunni Arabs, with few oil resources in territories they dominate, insisted that the federal committee have the power to approve contracts, rather than just reviewing them and offering advice.

The negotiators appear to have finessed that issue by allowing the regions to initiate the process of tendering contracts and by drawing up an exacting set of criteria to govern the deliberations of the committee rather than simply relying on its independent discretion. And in a bow to the Kurds, who objected to the use of the word “approve” in describing the committee’s duties, the draft law says instead that the committee may review and reject contracts that do not meet the criteria.

The draft law would also radically restructure parts of Iraq’s state-controlled and often lethargic oil industry by giving wide independence — possibly leading to eventual privatization — to the government companies that control things like oil exports, the maintenance of pipelines and the operation of the oil platforms in the Persian Gulf.

The law would also revive the Iraqi National Oil Company, a country-wide umbrella organization that was essentially shut down by Saddam Hussein.

At the same time, the law would place substantial administrative authority outside Baghdad by allowing any region that produces at least 150,000 barrels of oil a day to create its own operating company, according to Hussain al-Shahristani, the Iraqi oil minister and member of a powerful coalition of Shiite political parties who also serves on the negotiating committee.