Along with the pressures Iraq is facing to sign a SOFA or Status of Forces Agreement with the United States is the mounting unrest in regards to it Oil and Gas Law, a law still very much hotly contested.
One of the original co-authors of the law Tariq Shafiq has denounced the most recent versions of the law. In a document he prepared for the Center for Strategic International Studies he is very candid about what's at stake. "The last four years have witnessed repeated attempts at dismantling the basis for any well planned resources management for the whole nation only to replace it with market oriented destabilisation and fragmentation policies that are at variance, and in competition with each other and the national interest. Such policies have been advocated in turn by the Coalition Provisional Administration (CPA), the Transition Government of Dr Al’lawi."
At present negotiations are ongoing regarding short-term, no-bid contracts that would allow the U.S. and European oil
companies -- including Exxon Mobil, Royal Dutch Shell, Total SA,
Chevron, and BP.
Last week, Sen. Charles Schumer, D-New York, and Sen. John Kerry,
D-Massachusetts, sent a letter to Secretary of State Condoleezza Rice
expressing concerns about those no-bid contracts.
The senators,
who released the letter, said they are worried that unfair distribution
of oil revenue could inflame the violence between the warring religious
and political groups of Iraq.
"We urge you to persuade the
(government of Iraq) to refrain from signing contracts with
multinational oil companies until a hydrocarbon law is in effect in
Iraq," read the letter from Schumer and Kerry.
The Kurdish government of northern Iraq has already negotiated deals with western oil companies which parliament does not recognize as legitimate.
With the announcement today of 6 fields being opened up to foreign oil companies for the first time in 35 years and reports of the Oil Minister's attempts to crush the Iraqi oil union filtering out concerns run high.
The section of the law drawing the most debate allows the 18 provinces to negotiate there own oil deals with foreign oil and control production. "These provinces will have enough money to feel kind of independent and given now the Violence that's going on in Basra and other provinces, this is probably a recipe for the disintegration of Iraq." according to Mohammed-Ali Zany of the Center for Global Energy Studies.
Sami Ramadani, a senior lecturer in sociology at London Metropolitan University and was a political refugee from Saddam’s regime. Is very bold in his accusations that the US is trying to force the SOFA and the Oil law calling it "two pronged attacks on Iraq so that this occupation can bear fruits for the United States."
Iraqi's need a Hydrocarbon law as it's crucial for the countries reconstruction. But valid concerns about the dissection of Iraq buy big oil interests cannot be ignore.