No Blood for… Er… Um…

The Oil Majors Take a Little Sip of the Ol’ Patrimony

by Tom Engelhardt

More than five years after the invasion of Iraq — just in case you were still waiting — the oil giants finally hit the front page…

Last Thursday, the New York Times led with this headline: “Deals with Iraq Are Set to Bring Oil Giants Back.” (Subhead: “Rare No-bid Contracts, A Foothold for Western Companies Seeking Future Rewards.”) And who were these four giants? ExxonMobil, Shell, the French company Total and BP (formerly British Petroleum). What these firms got were mere “service contracts” — as in servicing Iraq’s oil fields — not the sort of “production sharing agreements” that President Bush’s representatives in Baghdad once dreamed of, and that would have left them in charge of those fields. Still, it was clearly a start. The Times reporter, Andrew E. Kramer, added this little detail: “[The contracts] include a provision that could allow the companies to reap large profits at today’s prices: the [Iraqi oil] ministry and companies are negotiating payment in oil rather than cash.” And here’s the curious thing, exactly these four giants “lost their concessions in Iraq” back in 1972 when that country’s oil was nationalized. Hmmm.