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Iraqi Deputy PM Barham Salih on oil law
26.2.2007
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BAGHDAD, February
26, -- The following is a text of statements made to
Reuters by Iraqi Deputy Prime Minister Barham Salih
on a draft oil law approved by the cabinet on
Monday.
Salih, who heads the committee that drafted the law,
told Reuters it would now be sent to parliament for
approval.
The legislation aims to optimise Iraq's oil and gas
exploitation and assures equitable distribution of
revenues among all Iraqis.
The law ends decades of excessive centralised
control over the industry which was often the
impediment to development for the sector. |
Barham Salih, Iraqi Deputy PM, a Kurd |
This delineates responsibilities and authorities
between the national institutions of the oil
ministry and INOC (Iraqi National Oil Company) and
the regional oil companies and establishes the
Federal Council of Oil and Gas that will become the
forum through which national oil policy will be
decided.
The decision making process has built in checks and
balances to enhance transparency and fight
corruption.
Iraq is home to one of the largest petroleum
resource bases in the world with potential oil
reserves in excess of 200 billion barrels and proven
reserves in the region of 115 billion barrels.
Moreover its exploration and development costs are
among the lowest in the Middle East.
The law is hoped to enable Iraq to achieve its
potential and utilise its revenues for the benefit
of all Iraqi people.
The cabinet endorsement of the legislation
represents a major breakthrough for Iraq's political
and economic transition. The law establishes the
basis of the political economy of a federal,
democratic, unified Iraq.
The council of ministers in an extraordinary meeting
today approved the draft of the national hydrocarbon
law.
The draft law prepared by the oil and gas
sub-committee of cabinet comes in the wake of nearly
six months of intense deliberation involving
industry experts and the political leadership of the
country.
The law aims to provide for a conducive investment
environment. It encourages private enterprise and
welcomes international oil companies to invest in
the development of the Iraqi oil sector. The
international oil companies have a recognised role
to play in the transfer of up-to-date, state of the
art technology, technical and managerial training of
Iraqis and in providing investment capital.
The law stipulates restructuring INOC so that it
will be an independent holding company with
affiliated regional operating companies. The oil
ministry will become the regulator for the sector.
The existing contracts signed by the KRG (Kurdish
Regional Government) will be reviewed by the KRG to
be made consistent with the premise of the law. A
commission of independent experts will ratify
consistency in case of contention.
Negotiations can be conducted by the regional
authority in accordance with procedures and
guidelines established by the Federal Council of Oil
and Gas. The negotiations and contracts will have to
be based on the main criteria of maximising revenues
for Iraqi people.
The political leadership have committed to have the
law and other associated laws and regulations be
implemented by the end of May 2007 -- admittedly
tough, and a gruelling schedule, but economic and
political imperatives of the country require all of
us to rise to the challenge.
Reuters
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