CRUDE DESIGNS: The rip-off of Iraq’s Oil Wealth

July 26, 2008 at 11:22 pm | Posted in Uncategorized | Leave a comment
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 Downloads:

Full Report: large (for printing) (2.3Mb PDF) small (screen only) (683Kb PDF) HTML version
Executive Summary (48Kb PDF)
Media Release (107Kb PDF)
Italiano (457Kb PDF)
In Arabic: Full Report (1.3Mb PDF)Executive Summary (137Kb PDF)Media Release (95Kb PDF)
Control of Iraq’s future oil wealth is being handed to multinational oil companies through long-term contracts that will cost Iraq hundreds of billions of dollars.

Figures published in the report for the first time show:
• the estimated cost to Iraq over the life of the new oil contracts is $74 to $194 billion, compared with leaving oil development in public hands. These sums represent between two and seven times the current Iraqi state budget.
• the contracts would guarantee massive profits to foreign companies, with rates of return of 42% to 162%.
The kinds of contracts that will provide these returns are known as production sharing agreements (PSAs). PSAs have been heavily promoted by the US government and oil majors and have the backing of senior figures in the Iraqi Oil Ministry. Britain has also encouraged Iraq to open its oilfields to foreign investment.
However PSAs last for 25-40 years, are usually secret and prevent governments from later altering the terms of the contract.
Crude Designs is co-published with Global Policy Forum, War on Want, NEF, Oil Change and The Institute for Policy Studies (IPS)

Places »
Iraq – النفط في العراق

‘Crude Designs: The Rip-Off of Iraq’s Oil Wealth’ reveals that current Iraqi oil policy will allocate the development of at least 64% of Iraq’s reserves to foreign oil companies. Iraq has the world’s third largest oil reserves.

 

The report is in Adobe Acrobat (PDF) format, and to view it, you may need to download Acrobat Reader.

 

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