- "The oil proceeds were, and still are, under the
total control of the occupation. The details thereof are not clearly known
since they are surrounded by mystery.
-
- The report issued by the General Accounting Office points
out that contracts, amounting to billions of dollars, were spent out of
the Iraqi Development Fund, without being reviewed by any independent party.
-
- The committee affiliated to the Senates' Council also
stated that the 20 billion dollars of the Iraqi funds that were spent one
week before the transfer of the authority to the Iraqis "were described
as waste, fraud, and abuse".
-
- After handing out the authority to the temporary Iraqi
Council of Governance on 28/6/2004, it is unknown yet who is the authority
the US relies on in spending the Iraqi funds, distributing and approving
contracts! (emphasis added) The official US spokesperson in Baghdad says,
"resuming funds allocation has been agreed upon by the dissolved coalition
authority and the Iraqi officials."!"
-
- The Economy of the Occupation To Whom it May Concern
October 8, 2005.
-
- In the South, and after 30 months:
-
- "The Ministry of Oil has signed a Memorandum of
Understanding with a well-known company to maintain the oil meters which
are not working now (emphasis added), in both Bakr Oil Terminal and Umaya
Terminal. He confirmed that current measurement is done by what he called
( engineering measurement on board the tanker ). He also confirmed that
American technical teams had started the survey to repair the damaged meters
and that part of the US grant money had been allocated for this purpose
and a special committee headed by the deputy minister had been established
for follow up."
-
- --Asim Jihad, Iraqi Ministry of Oil spokesman, as reported
by Al-Hayat newspaper, October 10, 2005.
-
- "As for any role for International Oil Companys
(IOCs) and National Oil Companies (NOCs), none should be expected in the
short or even medium term. It is the consensus of all concerned parties
that having security and stability is by far the most serious concern and
that seems to be a function of the political process and the presence as
well as the role of the occupation forces. Simultaneously it is essential
that dealings be handled through a permanent institution and not interim
or transitional governments and parliaments, changing every few months.
-
- If the proposed draft constitution, to be put to a referendum
on 15 October, is endorsed, then there will be new elections far a new
parliament on 15 December. But if the draft constitution is rejected, then
there will be elections for yet another interim parliament.
-
- So, in order to attract foreign companies in long-term
deals there will be a need for:
-
- * A new permanent government to be set up next February
after the elections in December. This could again be another interim government
if the constitution is rejected and in that case there will be a new referendum
and elections around mid-2006.
-
- * A new Hydrocarbon Law that will introduce the possibility
of foreign investment and participation of IOCs and NOCs. Such a step might
take quite some time, as in the case of Kuwait where Project Kuwait has
been discussed for over 10 years and is still delayed by conflict between
the government and parliament.
-
- * All necessary fiscal and legal laws to guarantee foreign
involvement.
-
- * Restructuring of the Ministry of Oil and the re-establishment
of Iraq National Oil Co (INOC).
-
- * A clear oil policy that outlines the basic principles
and modes to be followed for development, production-sharing, buyback,
development and production, service contracts etc or possibly a combination
for various fields.
-
- * Specific priorities, with super-giant fields at the
top of the list. Iraq in the past identified 33 oilfields for developments.
But there will be a conflict on this issue among the proposed regions and
provinces in Iraq. Iraq will certainly face a major problem of shortage
of experienced technical, legal and financial staff to handle the preparation
of the contracts and later their management. Iraq might need to adopt a
policy of hiring consultants to assist the Ministry.
-
- The above will depend entirely on the new constitution
under discussion. The relevant articles to the oil and gas industries seem
to contain the seeds for conflicts and possible fragmentation (emphasis
added), and hence a possible delay to proposed developments....."
-
- What Is Happening To Iraqi Oil? Issam Al-Chalabi, from
a paper presented at the 26th International Oil & Money Conference
held in London on 20-21 September 2005.
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