The Foreign Office took pains to help UK oil giants influence Iraq’s laws, writes Heather Stewart
Sunday March 4, 2007
Iraq’s huge oil reserves sparked a rush for black gold among foreign powers almost as soon as they were discovered a century ago. Today, nearly four years after the tanks rolled into Baghdad, the question of who should control Iraq’s resources is at the heart of efforts to stabilise the country.
Oil production is running at about 2m barrels per day – lower than under the strict oil-for-food regime before 2003. Britain has greeted the country’s new oil law, agreed by the Iraqi cabinet after furious debate, as a step toward unifying Iraq and kick-starting its economy. But the law’s references to long-term contracts of close to 40 years with oil companies have provoked anger among campaigners and Iraqi trade unions, who argue it will effectively hand control of the country’s oil to powerful multinationals. read more
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