The Iraqi Central government and Council of Representatives is discussing the New Oil Deal which allows foreign oil companies to cut long-term exploration and development deals with the government for 20 years, renewable for an additional five years. Companies willing to operate in a country with high physical risks — insurgents regularly blow up pipelines and kill contractors — will be allowed to export their oil after paying the government a minimum 12.5% royalty, although there are often additional cash signing bonuses to the government. Most "profit oil," extracted after operating costs are met, would likely go to Baghdad.
I am following this topic through different media. There was fear that the foreign oil companies would move into Iraq in force, and stay long after U.S. soldiers withdraw especially since Iraq nationalized oil from British companies on June 1st 1972. This could lead to another type of occupation.
Some analysts focus on the idea that Iraq has the world’s third largest oil reserves, which are mainly in the north and the south of the country. This means the Sunni region would not benefit from these revenues. This could increase the gap between multi-ethnic groups in Iraq, and increase the sectarian violence.
Another opinion is that al-Maliki's government is trying to serve the Western demand in Iraq, by passing the draft of this deal instead of looking out for the Iraqi people’s interest.
Another opinion suggests that Iraqi oil reserves were a motivation for the invasion because Saddam Hussein was an obstacle to the West accessing Iraqi oil. By removing him from power and executing him, the West can now working behind the scenes to get these drafts passed, which will lead to easier access to the Iraqi oil fields, and thus to influencing Iraqi policy.
One point really caught my attention: if Iraq wants to be open for international investment I questions why the contracts were not awarded to Russian companies since they worked in Iraq for many years and they have the experience with the Iraqi environment and culture.
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I think that this is an important step for the new government of Iraq. This is because it is of vital importance that the Iraqi people begin taking responsibilty for thier own country. The US and it's allies can give the Iraq's support financially and through limited military help, but in the finala analysis, this is Iraq's struggle for freedom and they are the ones who have to win it or lose it. With a stable source of income through oil, I think that Iraq will have a greater oppurtunity to support themselves.
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