comment: American Subsidiaries in Iraq

Responding to post by Tim Worstall on October 08, 2004.

Financial Times, Nov 3 2000:

Though legal, leading US oil service companies such as Halliburton, Baker Hughes, Schlumberger, Flowserve, Fisher-Rosemount and others, have used subsidiaries and joint venture companies for this lucrative business, so as to avoid straining relations with Washington and jeopardising their ties with President Saddam Hussein’s government in Baghdad.
By submitting their contracts to the UN via mainly French subsidiaries, many of which do little more than lend their name to the transaction, the companies are treated as European, rather than US or Japanese, applicants.

The US is behind nearly all the $289m of contracts delayed by the sanctions committee, which has received $1.7bn of contracts. These delays were ostensibly intended to prevent transfer to Iraq of dual-use technology that could be adapted for military purposes.

Washington Post, Oct 7 2004:

The names of U.S. companies and individuals who participated in the program were omitted from the report, because of what officials described as U.S. privacy law restrictions. But in June, three U.S. oil companies disclosed that they had received subpoenas in connection with a federal investigation into the program: Exxon Mobil Corp., ChevronTexaco Corp. and Valero Energy Corp.

Valero has said that it is cooperating fully, that the company had no direct contact with Iraq and that the subpoena does not imply any wrongdoing. Prem Nair, a spokeswoman for Exxon Mobil, said yesterday that the company did not violate any laws. “All purchases were documented as being in full compliance with all laws,” Nair said. ChevronTexaco did not return a phone call.

Center for Public Integrity and US Dept of Energy:

ChevronTexaco has given $3,266,223 to Republicans (71% of total contributions). They gave $2,044,869 to the National Republican Party Committees, and $45,600 directly to George W. Bush. In 2002, ChevronTexaco spent $5,286,000 on lobbying and imported at least 133,243 barrels of Persian gulf oil. Condoleezza Rice serverd on the board of Chevron through January 15, 2001.