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uly 3rd, 2008 3:55 am
Waxman: White House knew of Iraqi oil deal
By Ryan Grim / The Politico
In September 2007, the Kurdish Regional Government, which runs the semi-autonomous region of Northern Iraq, announced that it had entered into an oil contract with U.S.-based Hunt Oil. The deal complicated negotiations over a revenue-sharing agreement and the Bush administration declared itself shocked at the news. “I know nothing about the deal,” said President Bush.
Documents uncovered by the House Committee on Oversight and Government Reform indicate that the White House probably shouldn’t have been so surprised. Among the many pieces of evidence that the administration knew and approved of the deal:
— A Commerce Department official wished Hunt Oil officials “a fruitful visit to Kurdistan.”
— A Hunt Oil general manager said he met with nine State Department officials and none expressed opposition.
— Five days after the announcement of the deal, a State Department official told Hunt officials about another “good opportunity in Iraq.”
U.S. involvement in the oil contract is a prickly issue for a number of reasons. If the Kurdish region can gain control of and revenue from its oil resources, it could effectively split off from the rest of Iraq, which would anger Turkey and could inspire southern Shia to do the same. Meanwhile, the U.S. is at pains to show that the invasion had nothing to do with oil resources, an argument undercut if it’s seen assisting U.S. companies in the exploitation of Iraqi oil. Finally, deals cut without the involvement of the Iraqi central government can only further exacerbate tensions among the various sects.
Aware of the high stakes, President Bush issued a strong denial following the announcement of the deal. “I knew nothing about the deal. I need to know exactly how it happened. To the extent that it does undermine the ability for the government to come up with an oil revenue sharing plan that unifies the country, obviously if it undermines it, I'm concerned,” he said.
The White House wasn't immediately available to comment.
Waxman: White House knew of Iraqi oil deal
By Ryan Grim / The Politico
In September 2007, the Kurdish Regional Government, which runs the semi-autonomous region of Northern Iraq, announced that it had entered into an oil contract with U.S.-based Hunt Oil. The deal complicated negotiations over a revenue-sharing agreement and the Bush administration declared itself shocked at the news. “I know nothing about the deal,” said President Bush.
Documents uncovered by the House Committee on Oversight and Government Reform indicate that the White House probably shouldn’t have been so surprised. Among the many pieces of evidence that the administration knew and approved of the deal:
— A Commerce Department official wished Hunt Oil officials “a fruitful visit to Kurdistan.”
— A Hunt Oil general manager said he met with nine State Department officials and none expressed opposition.
— Five days after the announcement of the deal, a State Department official told Hunt officials about another “good opportunity in Iraq.”
U.S. involvement in the oil contract is a prickly issue for a number of reasons. If the Kurdish region can gain control of and revenue from its oil resources, it could effectively split off from the rest of Iraq, which would anger Turkey and could inspire southern Shia to do the same. Meanwhile, the U.S. is at pains to show that the invasion had nothing to do with oil resources, an argument undercut if it’s seen assisting U.S. companies in the exploitation of Iraqi oil. Finally, deals cut without the involvement of the Iraqi central government can only further exacerbate tensions among the various sects.
Aware of the high stakes, President Bush issued a strong denial following the announcement of the deal. “I knew nothing about the deal. I need to know exactly how it happened. To the extent that it does undermine the ability for the government to come up with an oil revenue sharing plan that unifies the country, obviously if it undermines it, I'm concerned,” he said.
The White House wasn't immediately available to comment.
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