US to Take Bigger Bite of Iraq's Economic Pie (privatizing oil)

[Barrett808]

The United States is helping the interim Iraqi government continue to make major economic changes, including cuts to social subsidies, full access for U.S. companies to the nation's oil reserves and reconsideration of oil deals that the previous regime signed with France and Russia.

During a visit here this week, officials of the U.S.-backed administration detailed some of the economic moves planned for Iraq, many of them appearing to give U.S. corporations greater reach into the occupied nation's economy.

For example, the current leadership is looking at privatizing the Iraqi National Oil Company, said Finance Minister Adil Abdel Mahdi.

The government, which is supposed to be replaced after elections scheduled for January, will also pass a new law that will further open Iraq's huge oil reserves to foreign companies. U.S. firms are expected to gain the lion's share of access in a process estimated to be worth billions of dollars.

"So I think this is very promising to the American investors and to American enterprises, certainly to oil companies," Abdel Mahdi said at the National Press Club in Washington, DC on Tuesday.

(more)

http://www.commondreams.org/headlines04/1224-05.htm