"It's All About
the Oil"
by Jeremy Scahill
The Director General for
Planning at the Iraqi Ministry of Oil has accused the Bush administration
of plotting to seize the countrys oil resources, saying these
people from Texas who rule the American administration want to send
us to Armageddonjust to get their hands on the fields in Iraq.
In an extensive interview
with Iraqjournal.org,
Dr. Faleh Al-Khyat detailed what Washington would have to gain by bringing
down the Iraqi government and replacing it with a puppet regime. He
highlighted two largely untapped oil fields in the south of Iraq, saying
they constitute the greatest prizes of the oil industry in the
world.
The two fields in question
lie southern Iraq: Majnoun and West Qurna (known here as The Giant).
A Russian oil consortium led by Lukoil signed contracts with Baghdad
to exploit the 15 billion barrel Qurna field, but in June the Iraqi
Oil Minister Amir Mohammed Rashid accused the Russians of slackness
and bowing to US pressure not to begin work on the site. Similarly,
he said that the French had slowed negotiations on the 20 billion barrel
Majnoun fields.
Since then, Al-Khyat says
that Iraq has begun exploiting the fields on its own. He said that Qurna
is currently producing 200,000 bpd, while Majnoun is pumping out 30-50,000
bpd. He says that Washington is well aware of the potential of these
two sites.
Were talking
about a half a million barrels each, at least, he said. Together
theyll make about a million barrels a day, and that is as big
as many OPEC countries. Now, were talking about giant fields at
the tip of the Gulf, on flat groundnot in the wilderness of Alaska
or in the isolation of the Caspian Sea. In the Caspian Sea, platforms,
drillings, pipelines to the Mediterranean going through countries and
mountains and whateverall that is to exploit 15 billion barrels
of oil. Now, 15 billion barrels of oil is equivalent to the reserves
of the West Qurna field second stage.
Al-Khyat said that Iraq continues
to negotiate joint-venture contracts with foreign investors and that
Washingtons policies are cutting American companies out of the
deals. But, he says, that is precisely the point. The United States
principally would be very stupid not to exercise pressure, he
says. Especially in the Administration which is led by the oiligarchs.
Iraq is second only to Saudi
Arabia in oil reserves. The country has some 112 billion barrels in
proven reserves and more than 200 billion in potential reserves. In
addition Iraq contains some 110 trillion cubic feet of natural gas.
Al-Khyat says that with world
oil consumption on the rise, oil-producing countries are being pushed
to increase their capacity. Where do you get the oil from? Saudi
Arabia is approximately producing to capacity. It tried to produce more
oil. It cannot, he says. The only potential country that
could increase its capacity quickly, cheaply and satisfactorily is Iraq.
It is not only it has the second largest reserve in the world, but potentially
it has the largest reserves in the world."
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Jeremy Scahill is an independent journalist, who reports for the nationally
syndicated Radio and TV show Democracy Now! He is currently based in
Baghdad, Iraq, where he and filmmaker Jacquie Soohen are coordinating
www.iraqjournal.org, the only website providing regular independent
reporting from the ground in Baghdad.