Iraqi minister says US, Britain could share oil

Iraqi Trade Minister Mr Mohammed Mahdi Saleh told Russian reporters in Baghdad today that US and British companies could gain…

Iraqi Trade Minister Mr Mohammed Mahdi Saleh told Russian reporters in Baghdad today that US and British companies could gain entry into its oil market if war is avoided.

ITAR-TASS reports Mr Saleh saying that Iraq "does not support any ties [in the oil industry] with either Washington or London.

"But if they end their hostile attitude toward Iraq, then there will be no obstacles for us resuming normal relations with them".

The French trade publication Petrostrategiestoday reports the US administration divided over how to manage Iraq's oil sector should President Saddam Hussein be overthrown.

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The US State Department would reportedly prefer the Iraqi oil industry to remain public.

But the Pentagon, backed by the White House, has argued that the US must adopt a more hands-on approach to controlling the Iraqi oil and energy industry by supervising its privatisation, Petrostrategiessaid.

"Under this approach, US companies would dominate the privatisation process, leaving 'consolation prizes' to the Russians, a respectable portion to the British and, if possible, nothing else to European firms," the magazine said.

AFP