--International oil companies could be offered some of the most corporate-friendly contracts in the world, including what are called production sharing agreements5. These agreements have been rejected by all the top oil producing countries in the Middle East because they grant long-term contracts (20 to 30 years in the case of Iraq's draft law) and greater control, ownership and profits to the companies than other models. In fact, they are used for only approximately 12 percent of the world's oil.6
Iraqis may very well choose to use the expertise and experience of international oil companies. They are most likely to do so in a manner that best serves their own needs if they are first freed from the tremendous external pressure being exercised by the Bush administration, the oil corporations — and the presence of 150,000 members of the American military.
Please drop the Iraqi Oil Law Benchmark, and oppose the Bush administration's ongoing efforts to pressure the Al-Maliki government to pass the law in the near future.
Signed,
20/20 Vision
AfterDowningStreet.org
Avaaz.org
Center for Corporate Policy
CodePink
CounterCorp
Democrats.com
Global Exchange
Global Response
International Forum on Globalization
Iraq Veterans Against the War
MoveOn.Org
Oil Change International
Organic Consumers Organization
Peace Action
PeaceVoter
Polaris Institute
Progressive Democrats of America
Public Citizen
Rainforest Action Network
True Majority
U.S. Labor Against the War
United for Peace and Justice
Voters for Peace
1 See the full text of Hasan Jum’a Awad’s Letter to Congress at: http://priceofoil.org/2007/05/12/iraqi-oil-workers-address-us-congress
2 Statement issued by the Iraqi Labor Union Leadership at a Seminar held from 10 to 14 December 2006, in Amman, Jordan – available at: http://www.carbonweb.org/showitem.asp?article=222&parent=4
3 Transcript of Diane Rehm show, April 26th, 2007, available at: http://priceofoil.org/wp-content/uploads/2007/05/DRS_04_26_07_Iraqi%20Oil.pdf
4 The Iraq National Oil Company would have exclusive control of just 27 of Iraq's 78 known oil fields, leaving two-thirds of the known and probable reserves open to foreign control under production sharing agreements.
5 Although in the latest draft of the law they have been renamed "Exploration and Production Contracts".
6 Muttitt, Greg, Crude Designs, November 2005, www.crudedesigns.org Iraq's neighbors Iran, Kuwait and Saudi Arabia maintain nationalized oil systems but all hire international oil companies as contractors to provide specific services as needed, for a limited duration, and without giving the foreign company any direct interest in the oil produced.
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