U.S. oil companies launch new Iraq invasion

And they're off! We're talking, of course, about the latest charge by U.S. companies toward financial nirvana in Iraq, where their expertise is apparently essential for the world's second largest proven oil reserves to be re-equipped for full production. Iraq officials are aiming for a five-fold increase in production to more than 11 million barrels a day in the next seven years, according to the New York Times. That level of oil production would rival Saudi Arabia and Iran for No. 1 in the world, the Times said. Such an increase means billions of dollars in contracts for new oil drilling, repairs to thousands of miles of pipeline, updating current facilities and construction of many more -- including, possibly, a new port on the Persian Gulf. U.S.-based oil-services companies Halliburton, Baker Hughes, Weatherford International and Schlumberger have either started sending workers and equipment to Iraq or have plans to, and construction and engineering giants KBR, Bechtel, Parsons, Fluor and Foster Wheeler are not far behind, the Times said. But Halliburton and its former subsidiary KBR, which used to be run by former U.S. Vice President Dick Cheney, Bechtel and Parsons were criticized by the Special Inspector General for Iraq Reconstruction for earlier work in the country, and could be headed for trouble before they're offered more. The companies have denied intentional wrongdoing and say that their experience in Iraq and in other oil-producing countries in Central Asia gives them an advantage, the Times said. “KBR has historic experience on previous oil and gas production projects ranging from Azerbaijan to Kazakhstan,” said Heather Browne, KBR’s director of corporate communications, in an e-mail to the Times. “Our pursuit of additional contracts in the region is based on this experience in addition to KBR’s work on Project RIO (Restore Iraq Oil).” David Lesar, Halliburton’s chief executive, said in October that his company was already doing work on oil wells there. “I think you see everybody trying to establish a base there, and we’re no exception,” he said. “Clearly, a great future there and one we will participate in — in a big way.” Iraq has signed 10 production contracts with international oil companies in the past few months and officials say they hope to drill at least 430 oil wells during the next two years, the Times said.

Nuclear deal with Iran faces crucial test tomorrow

Iran's effort to forestall tightening international economic sanctions over its nuclear program faces its first major test tomorrow when UN inspectors are scheduled to enter its formerly secret uranium enrichment facility near Qom. Nobody except the Iranians even knows if the experts from the International Atomic Energy Agency will actually be admitted to the site, even though Iran agreed to that in Geneva last month under pressure from Western nations, according to the Washington Post. The meeting was noteworthy for several developments, including the first public announcement of the existence of the enrichment plant and the highest-level official contact between Iran and the United States since 1979. Iran acknowledged the plant's existence in a letter to the IAEA last month, just before the Geneva conference. Tehran insists it has no designs on nuclear weapons but is merely developing nuclear power for electricity, which it insists it has a right to. But the plant, still under construction on the side of a mountain at a military base yet apparently known about for years by intelligence agencies worldwide, only is suitable for weapons development, the Post said. Iran plans to place only 3,000 centrifuges at the site, which is not enough to enrich uranium for a civilian nuclear plant, the Post said citing expert sources. Analysts say it would take Qom's centrifuges at least 20 years to produce enough uranium to power a 1,000- megawatt nuclear power reactor for a year. But the equipment could produce enough enriched uranium to build three nuclear bombs annually, the Times said. "There is no Iranian document saying the facility is designed for a military program, but what else can it be good for?" a senior Middle East-based intelligence official who studies Iran told the Times. In fact, the Qom plant has forced the United States to reconsider the 2007 conclusion of its intelligence agencies that Iran had halted nuclear weapons research in 2003. "Qom changed a lot of people's thinking, especially about the possibility of secret military enrichment" of uranium, another former officials told the Times. The revised assessments are classified, the Times said. But the public revelations about the plant do raise obvious questions about Iran's intentions, despite its protestations to the contrary. Of course, it never made sense that Iran needed to pursue civilian nuclear energy when it sits atop a sixth of worldwide oil reserves. If Russia and China are sufficiently alarmed, Qom could be the catalyst for further tightening of worldwide economic sanctions, just when it seemed Iran wanted to rejoin the nations trying to figure out how to live in peace.

IAEA plans inspection of Iran's formerly secret uranium enrichment facility

News that Iran has actually scheduled a team of experts from the International Atomic Energy Agency to inspect a formerly secret uranium enrichment facility being built near Qom appears to be a clear signal that the Islamic republic has changed course and decided to cooperate with the world community on nuclear proliferation. Iran agreed last week to permit inspectors to tour the underground facility, which previously had been kept secret in violation of IAEA notification requirements, according to the Reuters international news service. "IAEA inspectors will visit Iran's new enrichment facility, under construction in Qom, on 25th of October," said Mohammad ElBaradei, the director of the International Atomic Energy Agency said at a news conference with Ali Akbar Salehi, the head of Iran's nuclear effort. "It is important for us to have comprehensive cooperation over the Qom site. It is important for us to send our inspectors to assure ourselves that this facility is for peaceful purposes." Details of the inspection will be worked out at a meeting on Oct. 19, Reuters said. Western nations believe Iran is covertly developing nuclear weapons and has imposed a series of international trade sanctions against the country to force it to end or curtail its program. Tehran insists its nuclear work is aimed at the peaceful development of nuclear power for electricity, even though Iran's underground oil reserves are among the world's largest. But Iran has not exactly been truthful over the years, probably because of suspicions about the United States, which it regards, along with Israel, as its enemy. So, the disclosure of the secret facility caused an international furor culminating in last week's meeting in Geneva between Iran and the world's six strongest military and economic powers -- the permanent members of the UN Security Council plus Germany. The plant is not expected to be operational for 18 months. The Geneva meeting, at which Iran also agreed to send most of its nuclear material to France and Russia for processing, was the highest-level diplomatic contact between the United States and Iran since the 1979 revolution that overthrew the U.S.-backed Shah and brought religious leaders to power. U.S. President Barack Obama's top adviser on national security, James Jones, said Iran did not appear to be closer to having a nuclear weapon, contradicting a New York Times report on Saturday that a separate IAEA assessment had concluded Iran's program had advanced sufficiently to begin building a nuclear weapon.