Some of the difficulties that confront companies operating in
Iraq's energy sector came to light this month when the head of UAE drilling
company Piling Tech revealed to the Al-Alam newspaper
some of the challenges his company faces in going about its work. The head of
the company, which is contracted by Russian firm Lukoil,
explained how he was under sustained pressure from tribal elements in the south
that regularly demand payments and other favours.
According to the Piling Tech head, his company had been forced
to pay ID50 million to the heads of tribes in the area where the company
operates before it had even started work. Such demands are reportedly
commonplace. However, this was not the end of it. These tribes began coming back
demanding more money while other tribes started allying themselves with the
local tribes, enabling them to insist that the land the company is drilling
belongs to them and they should also be paid. The Piling Tech head described
these tribes as acting like “organised mercenaries”.
In addition, the tribes are forcing these international
companies to take on their members and to provide them with jobs. As the head of
the drilling company explained, “We were forced to take on unskilled workers
from the tribes and to give them jobs that they don't understand.”
One of the main problems is that these tribes appear to be
working in conjunction with, or at least with the blessing of, the security
protection teams set up to provide security at the oil sites. According to the
Piling Tech boss, “The police in charge of the protection gave the green
light to the tribes to take money from the companies. When they [the tribes]
come to us they feel strong and have no fear of the security protection
teams.”
He also revealed that some of his engineers and other employees
had felt so threatened by the behaviour of some tribes that they had quit their
posts and left the country.
For more news and expert analysis about Iraq, please see Iraq Focus.
© 2012 Menas Associates
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