One of the first actions by the USA after invading Iraq was to invalidate the existing Oil contracts which were in euros and the force their renegociation in U.S. dollars.
Now, the USA want the Iraqi governement to pass a new law on oil which will do three things:
« Financially, it legalizes very unfair types of contracts that will put Iraq in very long-term contracts that can go up to thirty-five years and cause the loss of hundreds of billions of dollars from Iraqis for no cause.
And the second point is concerning Iraq’s sovereignty. Iraq will not be capable of controlling the levels — the limits of production, which means that Iraq cannot be a part of OPEC anymore. And Iraq will have this very complicated institution called the Federal Oil and Gas Council, that will have representatives from the foreign oil companies on the board of it, so representatives from, let’s say, ExxonMobil and Shell and British Petroleum will be on the federal board of Iraq approving their own contracts.
And the third point is the point about keeping Iraq’s unity. The law is seen by many Iraqi analysts as a separation for Iraq fund. The law will authorize all of the regional and small provinces’ authorities. It will give them the final say to deal with the oil, instead of giving this final say to central federal government, so it will open the doors for splitting Iraq into three regions or even maybe three states in the very near future. »
For more info: http://www.democracynow.org/article.pl?sid=07/02/20/1523250