Kurdish Government Quietly Signs Oil Deal
Posted by Super G on December 1, 2005 - 11:02am
From the LA Times:
A controversial oil exploration deal between Iraq's autonomy-minded Kurds and a Norwegian company got underway this week without the approval of the central government here, raising a potentially explosive issue at a time of heightened ethnic and sectarian tensions.The Kurdistan Democratic Party, which controls a portion of the semiautonomous Kurdish enclave in northern Iraq, last year quietly signed a deal with Norway's DNO to drill for oil near the border city of Zakho. Iraqi and company officials describe the agreement as the first involving new exploration in Iraq since the U.S.-led invasion in 2003.
Some Iraqi politicians are not amused:
"This is unprecedented," said Alaa Makki, a leader of the Iraqi Islamic Party, a Sunni Arab group. "It's like they are an independent country. This is Iraqi oil and should be shared with all the Iraqi partners."For a different perspective, check out this article from the Kurdistan Regional Government.
(via Kevin Drum)
This is another potential problem.
Classical Balkanisation (or Romanisation maybe) in action. THE problem are the Kurds which by themself are THE problem of Turkey. Of course there will be a lot of blood to spill on old-style oil oooops... border issues, but the alternative is even more bloody.
Anyhow forget about oil form there in the next XXX years. Such young, unstable quasistates are uncapable of providing basic security, not to mention prosperity for their citizens or businesses. What they produce is mainly poverty and terroism.
Here are the perverse incentives: oil companies have more leverage over smaller regional governments and so want them to be stronger than the central government. So, it's best for them if the pot boils enough to weaken the central government but not so much that the entire thing collapses into civil war. The institutional arrangement is highly unstable and probably can't work unless the U.S. Pipeline Police remain indefinitely.
I think this is typical of what we can expect in ANY future, whether the US maintains a presence in the region or not. This area has always been tribal, and comfortable with it. I think that it simply doesn't matter whether we (the US) are there or not, the area is inherently unstable due to social and political forces that live on top of all this oil...
This should only add to the rationale and the push for AE!
Any opinions out there as to whether the Norwegians are motivated by greed? Or perhaps they WANT to provoke the US? Or perhaps they are just clueless?