The Bush administration indicated Tuesday that it had no plans to interfere with negotiations between Iraq and several Western oil giants...
The Bush administration indicated Tuesday that it had no plans to interfere with negotiations between Iraq and several Western oil giants to boost crude production in that country, despite concerns by some Democrats that the deal could inflame anti-U.S. sentiments.
The administration's position puts it at odds with Democratic Sens. Chuck Schumer of New York, John Kerry of Massachusetts and Claire McCaskill of Missouri, who warn that the deals could fan the perception that U.S. involvement in Iraq was motivated by oil.
In a letter Monday, the senators asked Secretary of State Condoleezza Rice to try to block the oil deals.
Until Baghdad agrees on how to divide the nation's oil revenues, the presence of Western companies - including U.S.-based Exxon Mobil - will heighten tensions among Iraq's feuding sectarian groups "at the same time that American service members are fighting night and day to reduce the levels of violence," they wrote.
State Department spokesman Tom Casey said it was unlikely Rice would try to interfere.
Likewise, Perino dismissed the senators' concerns as illogical.
The Democrats responded that while Iraq may be sovereign, the U.S. is entitled to speak up because of the number of troops and dollars it has invested in the country's future.
The Iraq oil deals will likely be announced by the end of the month. The agreements, worth around $500 million each, are seen as a stopgap measure to begin ramping up oil production while Iraq's sectarian groups debate legislation that would divide the nation's oil revenues.
While modest in size, the contracts are expected to give the companies a significant bidding advantage over others in the future.
