Demonstrating the core values of service and loyalty, former U.S. Ambassador to Iraq James Jeffrey now works directly for Exxon Mobile. Jeffrey was America’s man in Baghdad, helming the World’s Largest and Most Expensive Embassy there from 2010-2012.
The problem Jeffrey was most likely hired to resolve is oil, specifically oil in Kurdistan. The Kurds live in the northern chunk of Iraq and have always wanted to be an independent nation, separate from the Sunni and Shia Arabs who fill up the rest of Iraq. The “issue” of Kurdistan is one of the many significant genies the U.S. let out of the bottle with the 2003 invasion of Iraq that was left unresolved.
The Kurds have oil, which Exxon would like to have. In late 2011 as the U.S. military was sounding the call to retreat, Exxon Mobil, the world’s largest oil company, defied the instructions of the Baghdad government and signed a separate deal with the Iraqi Kurds to search for oil in the northern area of Iraq they control. To make matters worse, three of the areas Exxon signed up to explore are on territory in dispute.
Now, in 2013, the Iraq central government is in a muscle tussle with Exxon. Exxon faces a dilemma over whether to operate in the south of the country or honor its deals with the autonomous Kurdistan region. Iraqi Prime Minister Malaki and his central government says the oil company can’t have both. Maliki last month made Exxon an offer in a bid to woo back the company, which had seemed intent on pulling out of the $50 billion oilfield in the south under the central government’s jurisdiction. The substance of Maliki’s offer to Exxon is not known, but industry sources describe it as substantial and say it is likely to involve sweet contract terms. The condition is that Exxon quit the northern Kurdish region.
One in-the-know economist offered this insight into why Kurdish oil is so attractive to Exxon:
For all its faults, the Baghdad-run awarding of oil contracts is as open and transparent as you can get in this sector. The Kurds on the other hand have a very murky process that allows for immense kickbacks and skimming. U.S. companies prefer working with the Kurds because they simply wave a wand and awards a high-cost contract, while Baghdad nitpicks about every single cost.
So what’s a multi-national to do? Take the deal for the Shia south fields and abandon the likely richer northern Kurd fields? Why not hire a very recently ex-ambassador to pimp out his contacts with the Malaki government to see if you can score some crude from all sides? After all, since Jeffrey failed to positively affect the oil issue in Iraq as ambassador, what could possibly be wrong with him being hired as a consultant so that he, and Exxon, can profit from it?
So, to recap:
– Soldiers who fought in Iraq get killed, PTSD, record-high suicide rates, unemployment.
– Regular State Department drones who worked in Iraq get nothing special.
– Whistleblowers and those who pretend to be lose their jobs.
– Contractors who keep their mouths shut get rewarded with similar well-paid positions in Afghanistan.
– Ambassadors who stick to the party line get high-paid consulting gigs.
Jeffrey is pictured above, playing some sort of obscene hand gesture game with the vice president.
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