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Originally Posted by sabang  Quote: |
Originally Posted by machangezi all the major contracts for reconstruction of Iraq and its oil infrastructure going to American companies. | While the major major contracts have yet to be awarded, so far this is not the case. Even the French Total group has been awarded contracts, which pleasantly surprised me. And obviously BP & Shell have their snouts in the trough too. |
I believe the present oil exploration and development contracts are only very short term, 2 years and now proposed to be cut to only one year.
FOXNews.com - Iraq to Limit No-Bid Oil Contracts With Major Companies to One Year - International News | News of the World | Middle East News | Europe News
Denationalization of the Iraqi oil industry would necessitate much longer term contracts to attract serious bidders willing to invest for the long term.
Inviting the big companies in on no-bid short term contracts is probably a pretty smart thing to do at the moment while the future direction of US policy re the occupation is up in the air due to pending domestic US elections. Iraq needs the big companies expertise to turn their latent oil resources into much needed cash when the US pulls out. The Iraqi government hasn't sold out the Iraqi people just yet. As I see it they are just buying time (and expertise) without committing to anything long term.
However the Kurds have been signing long term oil and gas development contracts which the Iraqi central government has declared illegal.
VOA News - US Investigating Iraqi Oil Contracts
I guess the Kurds game plan is that if they can encourage enough foreign investment in their region the USA will protect them and allow them to form a separate country.