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Carve-up of oil riches begins
Sunday November 3, 2002 - The Observer

The leader of the London-based Iraqi National Congress, Ahmed Chalabi, has met executives of three US oil multinationals to negotiate the carve-up of Iraq's massive oil reserves post-Saddam. Disclosure of the meetings in October in Washington - confirmed by an INC spokesman - comes as Lord Browne, the head of BP, has warned that British oil companies have been squeezed out of post-war Iraq even before the first shot has been fired in any US-led land invasion. Confirming the meetings to US journalists, INC spokesman Zaab Sethna said: 'The oil people are naturally nervous. We've had discussions with them, but they're not in the habit of going around talking about them.' Next month oil executives will gather at a country retreat near Sandringham to discuss Iraq and the future of the oil market. The conference, hosted by Sheikh Yamani, the former Oil Minister of Saudi Arabia, will feature a former Iraqi head of military intelligence, an ex-Minister and City financiers. Topics for discussion include the country's oil potential, whether it can become as big a supplier as Saudi Arabia, and whether a post-Saddam Iraq might destroy the Organisation of Petroleum Exporting Countries. Disclosure of talks between the oil executives and the INC - which enjoys the support of Bush administration officials - is bound to exacerbate friction on the UN Security Council between permanent members and veto-holders Russia, France and China, who fear they will be squeezed out of a post-Saddam oil industry in Iraq. Although Russia, France and China have existing deals with Iraq, Chalabi has made clear that he would reward the US for removing Saddam with lucrative oil contracts, telling the Washington Post recently: 'American companies will have a big shot at Iraqi oil.' Indeed, the issue of who gets their hands on the world's second largest oil reserves has been a major factor driving splits in the Security Council over a new resolution on Iraq. If true, it is hardly surprising, given the size of the potential deals. As of last month, Iraq had reportedly signed several multi-billion-dollar deals with foreign oil companies, mainly from China, France and Russia.

***Well, that answers a lot of questions, I guess.*****

posted by A Curmudgeon 7:01 AM