Saturday, March 10, 2007

 

British diplomats tried to influence Iraqi oil law in favour of UK businesses

Oil
(Al Jazeera)
A social justice group has obtained documents showing that the British government tried to influence a new Iraqi oil law in favour of UK businesses. The London-based Platform group said on Friday that the documents showed British diplomats tried to exclude Iraqi oil firms in favour of firms such as BP and Shell. Greg Muttitt, an oil campaigner with Platform, told People and Power programme aired on Al Jazeera on Friday, that the British government was "using their position as a military occupier to influence and shape the future of the country's economy in the interests of powerful companies".
British diplomats have been involved in "extensive efforts since at least 2004 to push for companies such as BP and Shell to receive long-term contracts, which would give them exclusive rights to extract Iraq's huge oilfields", Platform said in a press release on Friday.
The group said they were able to prove this using documents obtained under Britain's freedom of information act. Muttitt said Iraqis have been "excluded" from the oil law while the British foreign office played a "central role in supporting the efforts of the oil companies to lobby the Iraqi government".
Speaking to Al Jazeera's People and Power programme broadcast on Friday, Kim Howells, a British foreign office minister, denied those claims, saying, "This is paranoia gone completely loopy ... If we were interested in the oil, we would have done those dirty deals that some of the other countries did with Saddam Hussain and the gangsters who ran his regime." He also accused campaigners of seeking to promote their own causes at the expense of the Iraqis.
Speaking to People in Power, David Horgan, managing director of Petrel Resources, said: "If you worry too much about a perfect solution, you will get no solution. What's right is what works. The oil industry and business people generally are very good at getting things done." Petrel Resources was awarded a development service contract for Iraq's Subba and Luhais oil field in September 2005.
Critics have also said the new legislation, which aims to share oil revenues between 18 provinces making allocations based on population levels, will aggravate sectarians tensions in Iraq. Isam Al-Chalabi, Iraq's former oil minister, has called the oil law "ambiguous and unclear". He said: "If it's accepted in its present form certainly it will not be a new beginning to the betterment of the people. On the contrary, it is only adding fuel to the fire."

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