Madam Speaker, I submit the following for the Record: Read the Iraqi Parliament's Hydrocarbon Law: The Iraqi ``Hydrocarbon Law'' Contains Three Sentences on Oil Revenue Sharing and 33 Pages on Privatization Dear Colleague: An issue of…
Madam Speaker, I submit the following for the Record:
Read the Iraqi Parliament's Hydrocarbon Law: The Iraqi ``Hydrocarbon Law'' Contains Three Sentences on Oil Revenue Sharing and 33 Pages on
Privatization
Dear Colleague: An issue of critical importance, the Iraqi
``Hydrocarbon Law'', was again broached yesterday for the
third time in the Democratic Caucus and I want to provide you
the facts and evidence to support the concerns I have
expressed.
As you know, the Administration set several benchmarks for
the Iraqi government, including passage of the ``Hydrocarbon
Law'' by the Iraqi Parliament. The Administration misled
Congress by emphasizing only a small part of this law, the
``fair'' distribution of oil revenues. Consider the fact that
the Iraqi ``Hydrocarbon Law'' contains a mere three sentences
that generally discuss the ``fair'' distribution of oil.
Except for three scant lines, the entire 33 page
``Hydrocarbon Law'' is about creating a complex legal
structure to facilitate the privatization of Iraqi oil. As
such, it is imperative that all of us carefully read the
Iraqi Parliament's bill because the FY07 Iraq Supplemental
puts Congress on the record in promoting oil privatization.
The U.S. Troop Readiness, Veterans' Care, Katrina Recovery,
and Iraq Accountability Appropriations Act of 2007, released
yesterday, contains Sec. 1330(2)(A) requiring a report by the
President on ``whether the Government of Iraq has enacted a
broadly accepted hydro-carbon law that equitably shares oil
revenues among all Iraqis.'' The Iraqi ``Hydrocarbon Law'' is
not broadly accepted and does far more than share revenues.
The final 3 months of war funding are tied to the favorable
completion of this report and a favorable vote by Congress.
It is also important to highlight Sec. 1311(2) of the
Supplemental bill, which prohibits funds ``to exercise United
States control over any oil resource of Iraq.'' The crucial
issue is not the U.S. government control of Iraqi oil
resources. Rather the issue is Congress passing a measure
that pressures Iraq to pass their ``Hydrocarbon Act'' so
that multinational oil corporations (many based in the
U.S.) will exercise control over Iraqi oil resources.
Here are the annotated facts, according to reliable media
sources:
Foreign Oil Company Control
``The law, if passed, is expected to open the country's
billions of barrels of proven oil reserves, the world's third
largest, to foreign investors.''
``Under the new law, the Iraq National Oil Company would
have exclusive control of only about 17 of Iraq's
approximately 80 known oil fields.''
``The law would also allow the government to negotiate
different kinds of exploration and production contracts with
foreign oil companies, including Production Sharing
Agreements, or PSAs. Energy lawyers favor these because they
allow oil companies to secure long-term deals and book oil
reserves as assets on their company balance sheets.''
``The proposal would provide for production sharing
agreements that would give international firms 70 per cent of
the oil revenues to recover their initial investments and
subsequently allow them 20 per cent of the profits without
any tax or restrictions on the transferring of funds abroad.
``Energy lawyers agree. ``Pretty much all the major oil
companies are taking a very close interest in the future
potential in Iraq,'' says Mathew Kidwell, a partner in the
Dubai office of Fulbright & Jaworski. ``We have certainly had
discussions with a number of our oil industry clients about
the legal framework.'' ''
Iraqi Self Governance Threatened
The unions were kept in the dark, as were most members of
Iraq's parliament, until the draft law was leaked to the
media. Even then it was still out of the reach of most of
Iraq's citizens.
``Iraq will not be capable of controlling the levels--the
limits of production, which means that Iraq cannot be a part
of OPEC anymore. And Iraq will have this very complicated
institution called the Federal Oil and Gas Council, that will
have representatives from the foreign oil companies on the
board of it, so representatives from, let's say, ExxonMobil
and Shell and British Petroleum will be on the federal
board of Iraq approving their own contracts.''
``Under the proposed law, foreign companies would not have
to invest their earnings in Iraq, hire Iraqi workers, or
partner with Iraqi companies.''
``Iraq's oil unions have threatened to shutdown production
if foreign companies are allowed too much control.''
``The Iraq National Oil Co. would restart but compete with
foreign oil companies, who could win contracts giving them
partial ownership of the respective fields.''
Persuasion by Foreign Occupiers
``The British Government intervened to help UK and US
energy giants in their attempts to secure lucrative contracts
to exploit Iraq's ruined oilfields.''
``The Foreign Office delivered a report by the
International Tax and Investment Center (ITIC)--a Washington-
based think-tank backed by a host of multinationals,
including oil companies such as Shell and BP--to Iraqi
officials in Baghdad, it has emerged.''
``The British ambassador to Iraq formally sent the `road-
map' study on the Iraqi oil industry to the then Iraqi
minister of finance, according to documents seen by The
Independent on Sunday. The study recommended the Iraqi
government sign long-term production-sharing agreements with
foreign oil companies.''
``The ITIC hosted a conference in Beirut in January 2005 to
give a formal presentation to Iraqi ministers. Executives
from BP, Shell, ChevronTexaco, the Italian oil company ENI
and its French rival Total attended.''
If the above quotes are not persuasive, then I highly
encourage you to read the Iraqi ``Hydrocarbon Law'' yourself.
It is available, not because the Iraqi government released
it, but because the Kurds released it. This version passed
the Iraq Cabinet, and was referred to the Parliament. http:// web.krg.org/uploads/documents/Draft%20Iraq%20 Oil%20 and