Feral Jundi

How I read this is that the Oil Ministry wants to pull what Afghanistan is wanting to do, and get paid for Oil Police to protect these oil companies. So what they do is demonize these private security firms so they can justify this action.

Which is fine except Iraq is going to run into the same problems as Afghanistan with their APPF farce. The Oil Police are probably still corrupt, and honestly I could see them dropping the ball on quality of service or even allowing an infiltrator or two to make their way onto these oil drilling sites or arranging for kidnap type deals. Until Iraq is free and clear of this insurgency and Al Qaeda, or free of Quds forces/Iranian influence, I would have to say that trust of the Oil Police would be pretty low.

And speaking to that trust, usually a company has a buffer between it’s employees out in the field and a local guard force. A protective detail that provides some comfort to these companies so they can operate and know they have a trusted force watching their back. Most companies already operate like that now–with a local guard force running the perimeter and a PSD force watching over and managing the local guard force.  It works well, but to take that buffer out of the picture is a big mistake. Especially in an active war zone.

I am also wary of cost. How much more will companies have to pay for this Oil Police protection? What will these companies have in the way of checks and balances if this force steals from them or does something in violation of a contract? In other words, you can fire a private security company, but how can you fire a government force–and especially if it is criminal/corrupt or provides poor service?

Personally, Iraq should do all it can to accommodate these oil companies. Let them have their private security, but also encourage them to contract local guard forces–which they already do.  Focus the Oil Police on actual police duties that would further protect these oil assets. Believe me, they have plenty to do when it comes to preventing attacks and crime against oil infrastructure. Private security also does not patrol out in the towns and cities, nor do they have arresting authority.  So why use the police as body guards, when they would be far more useful just being police?

We will see how this turns out. I am sure Iraq will do whatever they want, and this is more of the same when it comes to hassling PSC’s there. I am also wondering if they are treating all PSC’s like this, or just the western PSC’s?  I say this because if you look at the graphic below, there are oil companies from all over the world operating in Iraq. If there is any discrimination here, I would like to hear about it and please feel free to post that in the comments below. I would also be curious if this new statement violates any prior contracts or memorandums signed between Iraq and these companies? –Matt

Iraq bans security firms on oil fields
March. 19, 2012
With U.S. forces gone from Iraq, Baghdad has banned foreign security contractors, long abhorred by Iraqis, from the 12 major oil fields being developed by international companies, mainly in the south.
But the government may find that hard to enforce.
Iraq’s military and security forces, still being trained by Americans, have shown themselves incapable of maintaining stability and protecting these vital and vulnerable facilities amid a surge in political violence since the U.S. withdrawal was completed Dec. 18.
The order by Iraq’s Oil Ministry was issued Feb. 29 and signed by Director General Faisal Walid. The contractors, the ministry declared, will be replaced by Iraq’s Oil Police who “will provide the necessary protection.”
Whether the 31,000-strong U.S.-trained force is capable of shielding Iraq’s vast oil and gas infrastructure, that includes 4,500 miles of pipelines which Baghdad is expanding under a $50 billion upgrade program, remains to be seen.
The ban reflects a wider drive by Prime Minister Nouri al-Maliki’s Shiite-dominated government to impose tough restrictions on the tens of thousands of private security personnel who remain in Iraq, and eventually to throw them all out.

In February, the government introduced a parliamentary bill aimed at limiting the number of foreign security contractors operating in Iraq. These companies using heavily armed mercenaries, most of them ex-military men, have a reputation in Iraq for reckless operations in which innocent civilians have been killed and with few of the perpetrators being brought to justice.
The companies, operating with U.S. sanction, have operated with little oversight or accountability. Many of the foreign mercenaries are also hostile toward Iraqis generally.
The most notorious incident involving private military companies was the killing of 17 civilians in Baghdad’s Nisour Square by men from Blackwater Worldwide Sept. 16, 2007.
The legal case against six — later five — individual Blackwater employees connected with the incident was ultimately dismissed, which incensed many Iraqis.
“The company changed its name to Xe — then, later, ACADEMI — to distance itself from its troubles in Iraq. While the company no longer has a license from the Iraqi government to operate there, many of its former employees, now with other firms, still work in-country.
“The U.S. has now left Iraq,” the Middle East Economic Digest reported,” but the legacy of the private security firms remains.
“Baghdad’s security woes have been described as a competition for legitimacy.
“If the government lets armed contractors operate on its soil without accountability, it cannot claim to be legitimate and will not be viewed as such by the locals,” MEED observed.
The dismissal of the case against Blackwater in 2010 is a painful reminder of this … Whether the Oil Ministry can push through with plans to remove all foreign security firms from its oil fields is a different issue …
“The Oil Police, who are expected to take over the job of providing security, are still relatively young and largely untested.
“The foreign oil firms who employ private contractors to protect their assets may yet have enough leverage to keep hiring them for now.”
Some of the 109 security companies registered in Iraq say they’re already having problems, such as security operating permits and obtaining visas for foreign employees. These, officials say, are just part of what they see as a government drive to impose administrative roadblocks to make things difficult for foreign contractors.
Most of them are U.S., British or European firms that employ in excess of 36,000 personnel, more than half of them foreigners.
Western oilmen say that if these operatives were forced out of Iraq, it would leave the oil fields and their widespread infrastructure, widely attacked during the post-2003 invasion fighting, highly vulnerable to attack by insurgents.
This at a time when Baghdad wants to quadruple production to around 12 million barrels per day from the current level of 3 million bpd. Iraq cannot achieve this without the score of oil majors that have signed 20-year production contracts with Baghdad since 2009. The government’s whole reconstruction program depends on oil revenues.
Maliki appears to be seeking to set himself up as dictator controlling a high centralized power structure. To achieve that he will need to develop Iraq’s vast energy wealth.
And to do that, he’ll need to keep the foreign oil companies sweet because they’re the ones providing the investment capital and the advanced technologies that will make it happen.
Story here.