Carve-up of Iraqi oil riches begins

Peter Beaumont and Faisal Islam of the Observer report on the oil negotiations in progress for a post-Saddam Iraq.

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...

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.'

...Planning for Iraq's post-Saddam oil industry is being driven by a coalition of neo-conservatives in Washington think-tanks with close links to the Bush administration, and with INC officials who have long enjoyed their support. Those hawks have long argued that US control of Iraq's oil would help deliver a second objective. That is the destruction of Opec, the oil producers' cartel, which they argue is 'evil' - that is, incompatible with American interests.

...A model for the carve-up of Iraq's oil industry was presented in September by Ariel Cohen of the right-wing Heritage Foundation, which has close links to the Bush administration.

In The Future of a Post-Saddam Iraq: A Blueprint for American Involvement, Cohen strikes a similar note to Chalabi, putting forward a road map for the privatisation of Iraq's nationalised oil industry, and warning that France, Russia and China were likely to find that a new INC-led government would not honour their oil contracts.