Amidst the daily violence suffered by Iraqis, oil companies and the US and UK governments are planning to secure long-term control over Iraqi oil. Accounting for 10% of the world total and 95% of government revenue, the stakes for oil companies and the Iraqi people are incredibly high.

A Hydrocarbon Law which advocates a radical restructuring of Iraq's oil industry was approved by the Iraqi cabinet this February. It was crafted in secret over an 8 month period from July 2006, in consultation with 9 foreign oil companies, the US and UK governments and the IMF. Iraqi Parliamentarians saw it for the first time this February. Iraqi civil society has had no involvement in the process, despite lobbying for inclusion. For the past four years, contractual mechanisms such as Production Sharing Agreements (PSAs) and Exploration Risk Contracts have been promoted by oil companies and occupation-installed oil ministers and advisers. Once signed, they are virtually unchangeable and will control development of Iraq's oil for decades. They will cost the Iraqi state billions in lost revenue.

This law surrenders Iraq's sovereignty and economic future to foreign interests. It has been crafted in secret, and pushed forward through war and occupation. No law should be passed, let alone contracts signed, while Iraq is subjected to a military occupation and foreign interference.