U.S. Helped Draw Up Iraqi Oil Deals

By Jay Allbritton
Jul 1st 2008 3:00PM

Filed Under:eBush Administration, Senate, Breaking News, Iraq, Energy

The New York Times reported yesterday that American advisers were involved in drawing up contracts between the Iraqi government and five oil companies. This report contradicts statements made by Bush administration officials that the government had no hand in the contracts.

Last week White house press secretary Dana Perino said, "[Iraq] can make decisions based on how it feels that it wants to move forward in its development of its oil resources and if that means that our companies here in the United States can compete and win business, then that's for them and the Iraqis to decide but I don't think the federal government of the United States needs to get involved."

A State Department spokesman expressly stated that the since the U.S. had no involvement in Iraqi contracts, the U.S. would not "block the Iraqi government from contracting in the way it sees fit."

Earlier this month Secretary of State Condoleezza Rice told Fox News, "The United States government has stayed out of the matter of awarding the Iraq oil contracts. It's a private sector matter."

The Times report, however, asserts that the State Department led the team of American advisers that helped create the contracts.
Last week three Democratic Senators requested the signing of the contracts be delayed until the Iraqi Parliament passes a laws regarding the distribution of oil revenues and other regulatory matters on the grounds that the no-bid contracts could endanger American soldiers by causing the delicate political situation in Iraq to deteriorate.

When these contracts expire, longer term contracts will be open for bid, but only 35 companies have been deemed qualified to bid.

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