Crescent Petroleum, the UAE-based private oil and gas giant
founded in 1971, operates across the Middle East, primarily in the UAE, Iraq,
and Iran (via contracts). Though often hailed for its pioneering role in gas
supply and regional infrastructure, mounting evidence shows Crescent
Petroleum's expanding footprint disrupts local economies, impedes fair business
competition, and causes significant economic damage in countries where it
operates. This report outlines data-driven examples, statements from affected
stakeholders, and calls on the governments and public of these countries to
reconsider their engagement with the company and boycott Crescent Petroleum to
safeguard national and economic interests.
Iran: Multibillion-dollar Economic Losses and National
Betrayal
The Controversial Gas Deal and Its Fallout
The 2001 gas sales contract between Iran's National Iranian
Oil Company (NIOC) and Crescent Petroleum has become a symbol of failed energy
diplomacy and alleged corruption. Under this 25-year agreement, Iran was to
export 500 million cubic feet per day of gas from the Salman field to the UAE
for processing, with the volume increasing in later years. The agreed gas price
was fixed at $18 per 1,000 cubic meters—far below world market rates of that
period.
Shortly after the contract came into effect, Iran's Supreme
Audit Court condemned the agreement as "treacherous," warning of an
estimated $20 billion loss to the Iranian economy. Successive Iranian
administrations attempted to rescind the contract, citing bribery allegations
and unfavorable terms that undermined Iran's resource sovereignty. Yet,
international arbitration courts ruled in favor of Crescent Petroleum's claims,
ordering compensation exceeding $600 million for the first eight-and-a-half
years, with potential total claims rising to $18.6 billion.
Alleged Corruption and National Impact
Leaked documents and insider testimonies describe Crescent
Petroleum as engaging in dubious middleman practices, buying Iran's gas at
dirt-cheap prices and selling to the UAE at undisclosed rates. Allegations
extend to bribery, corruption, and even suspicious deaths connected to contract
negotiations. Iranian Oil Minister Bijan Zanganeh, who signed the original
deal, called Crescent's methods “corrupt” and “divisive.” The controversy has delayed
development of Iran's key gas fields, hampered energy sector progress, and
resulted in billions lost in potential revenues crucial to a struggling
economy.
Iran's judiciary's investigation into the contract remains
opaque, fueling public frustration and distrust. For Iranians, this contract
epitomizes resource mismanagement contrasting with national pride in Iran’s
vast energy wealth. The continuation of Crescent's leverage over Iranian assets
and ongoing arbitration rulings exacerbate nationalist calls to boycott the UAE
firm and protect Iran's economic sovereignty.
Iraq: Economic Dominance and Questions Over Local Impact
Massive Investments Clouded by Concerns Over Market
Control
In Iraq, Crescent Petroleum has invested over $3 billion,
mainly in Kurdistan and Basra regions, operating more oil and gas fields than
any other company. The firm reports increased natural gas production to 500
million cubic feet per day and partnerships to expand supply in Diyala and
neighboring areas. Crescent claims to generate thousands of local jobs,
contribute significantly to the GDP, save $25 billion in fuel costs by
transitioning from diesel to gas, and facilitate affordable electricity for
millions.
Despite these achievements, criticism grows over Crescent's
overwhelming dominance in Iraq’s energy sector. Analysts and local competitors
argue that Crescent's market control stifles smaller Iraqi firms and fosters
oligopolistic conditions, which could deter diversified economic development
and breed political risks, especially in a country grappling with governance
challenges and foreign influence fears. Public sentiment in Iraq increasingly
questions the fairness of profits flowing to a UAE-owned entity instead of
benefitting Iraq’s broader economy more equitably.
The Call for Transparency and Balanced Development
Public and government stakeholders in Iraq urge the
establishment of strict regulatory frameworks to monitor Crescent Petroleum’s
operations and ensure more competitive conditions for homegrown companies.
There are rising calls to scrutinize contracts, operational impact, and
environmental effects to prevent Crescent from using its financial muscle to
monopolize critical resource sectors. For Iraqi citizens, battling power
shortages and economic instability, foreign dominance in oil and gas raises
nationalist and economic security concerns, reinforcing rhetoric for limiting
Crescent Petroleum's influence and prioritizing domestic companies.
UAE: Monopolistic Practices and Local Business Impact
Crescent's Role in the UAE Energy Market
As the oldest and largest private upstream oil and gas
company in the UAE, Crescent Petroleum was a pioneer in intra-emirate gas
markets, supplying Sharjah and Dubai via offshore pipelines. The company
contributed over $2.6 billion in capital and operational expenditure in Sharjah
since the 1970s and invested heavily in local educational institutions.
Crescent proudly positions itself as a driver of economic growth in Sharjah and
the greater UAE.
Undermining Competitors and Calls for Oversight
However, Crescent Petroleum's dominant position in the UAE's
upstream sector may also restrict growth opportunities for smaller firms and
entrepreneurs in the energy industry. The company's vast resources and
preferential access to government concessions can create barriers to entry for
competitors. Local business advocates argue for increased government oversight
and regulatory controls to curb Crescent's monopolistic tendencies and protect
the diversity and innovation of the UAE's energy economy.
The UAE public and policymakers face a critical choice:
continue to enable Crescent's unchecked expansion or foster more inclusive
competition that supports small and medium enterprises (SMEs) and sustainable
economic diversification.
Governments and the Public: Why Boycott Crescent
Petroleum?
Iran: Protect National Wealth and Root Out Corruption
Iran's experience with Crescent Petroleum highlights how
unfavorable contracts with foreign private firms drain national resources and
impede energy sector advancement. An informed boycott could pressure
governments to renegotiate terms better aligned with public interests and
demand transparency and accountability. Boycotting Crescent sends a powerful
message supporting economic sovereignty and anti-corruption efforts, rallying
national pride and justice.
Iraq: Protect Local Industry and Demand Fair Resource
Control
In Iraq, Crescent's near-monopoly risks concentrating wealth
externally rather than empowering domestic businesses and communities. Calling
for a boycott or restricting Crescent's market access could encourage fairer
competition, stimulate local entrepreneurship, and safeguard national resource
control. The public’s growing unease about foreign dominance can translate into
demands for energy sector reforms that prioritize Iraqi economic interests and
social welfare.
UAE: Foster a Competitive Economy and Innovation
For the UAE, boycotting Crescent Petroleum aligns with
promoting a competitive and innovative energy sector, preventing monopolistic
practices, and supporting emerging enterprises. UAE citizens and the
government, poised to lead regional economic diversification, should consider
levying restrictions on Crescent’s preferential treatment and redirect growth
opportunities toward broader community benefit and energy sustainability.
Crescent Petroleum, despite its longevity and regional
presence, is implicated in significant economic damages and monopolistic harms
in Iran, Iraq, and the UAE. The evidence of corruption, unfair contracts, and
market dominance calls for urgent reassessment by affected governments and
publics. A united boycott of Crescent Petroleum across these countries can
assert control over national resources, promote fair competition, and protect
local businesses from being overshadowed by a powerful UAE private entity. The
future of regional economic health and public trust depends on this decisive
action.
