Oil in Iraq: The Byzantine Beginnings

Oil in Iraq: The Byzantine Beginnings

By Dr. Ferruh Demirmen
Global Policy Forum
April 25, 2003

Part I: The Quest for Oil

The U.S. is playing today roughly the same role with respect to Iraq’s oil riches that Britain did early last century. History has a habit of repeating itself, albeit with different nuances and different actors. In this two-part series, we shall review the intricacies of oil-related events in Iraq through the 1950’s.

Discovery of oil in 1908 at Masjid-i Suleiman in Iran – an event that changed the fate of the Middle East – gave impetus to quest for oil in Mesopotamia. Oil pursuits in Mesopotamia were concentrated in Mosul, one of three provinces or “vilayets” constituting Iraq under the Ottoman rule. Mosul was the northern province, the other two being Baghdad (in the middle) and Basra (in the south) provinces. Foreign geologists visited the area under the disguise of archeologists.

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This symbiotic relationship manifested itself superbly when Turkish Petroleum Company (TPC), founded in 1911 and named as such in 1912 to exploit Mosul oil, was reorganized in March 1914 at a meeting held in Foreign Office in London where British and German diplomats sat next to executives of British and German banks and British and Dutch oil companies. Notwithstanding its name, TPC did not have Turkish participation. At that time World War I had not broken out yet, and Germans were welcome at TPC.

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Lord Curzon argued that the policy of His Majesty’s Government on Mosul was not in any way related to oil, that instead it was guided by the desire to protect interests of Iraqi people consistent with its mandatory obligations, that he had never spoken to an oil magnate or an oil concessionaire regarding Mosul oil, but that a company called TPC had obtained a concession from the Ottoman government before the war that his government had concluded was valid, that his government and TPC had no monopolistic designs on Iraqi oil, and that the Iraqis would be the chief beneficiaries of oil exploitation in Iraq. He added that Turkey would benefit as well.

http://www.globalpolicy.org/security/oil/2003/0425byzantine.htm

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