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Iraq oil minister under fire over output
27.5.2009
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May
27, 2009
BAGHDAD, — Iraqi Oil Minister Hussein al-Shahristani
is expected to be summoned before parliament soon to
face a grilling for failing to boost crude exports
from the oil-rich nation, MPs said on Tuesday.
Lawmakers have gathered 140 signatures, more than
enough for Shahristani to be called before the
assembly to answer questions about the ministry he
has headed for the last three years.
If MPs are dissatisfied with the minister's
explanations, a no-confidence motion could follow --
and he could potentially be fired by Prime Minister
Nuri al-Maliki. |
Dr. Hussain Al-Shahristani Minister of Oil, Iraq |
"The reason is that he has performed badly and
parliament wants to ask questions and hear what the
minister has to say," Mahmoud Othman,
a Kurdish MP, told AFP.
"There could be a motion of no-confidence and this
demand will be presented to the premier who will
take a decision on what to do."
Ezzedine Al-Dawlah, a Sunni Arab MP in the largest
Sunni bloc the National Concord Front, confirmed the
plans but could not say when Shahristani would go
before lawmakers.
The summons comes at an especially sensitive time.
Iraqi Trade Minister Abdel Falah al-Sudani stepped
down on May 14 amid allegations of corruption and
embezzlement linked to the nation's food assistance
programme.
His resignation was accepted by Maliki on Monday
after lawmakers began to prepare a no-confidence
motion.
Allegations of graft have also surrounded
Shahristani although oil ministry spokesman Assem
Jihad insisted that parliament was only interested
in understanding oil production.
"The summons is not related to corruption, but to
examine production rates." Jihad said.
"We hope that the questions will focus on
professional matters and not politics or the
settling of old scores," he added.
During his tenure, Shahristani has failed to
increase production above 2.2 million barrels per
day and taken only tentative steps toward drumming
up foreign investment.
The summons could also complicate Iraq's expected
announcement later this month of its first licensing
agreements in decades awarded to a slew of awaiting
foreign firms.
Iraq has said it aims to pump six million barrels
per day within the next four to five years but in
reality progress to tap its massive reserves has
been hamstrung by a dispute over oil-rights between
Baghdad and the Kurd region.
A proposed national oil law is still stalled in
parliament after three years.
Earlier this month the Kurdish autonomous region
ramped up pressure on Baghdad to be allowed to
export their oil and gas in their bid to better
control their own energy resources.
Oil prices have dropped from a peak of 147 dollars a
barrel in July and are now fluctuating at around 60
dollars,www.ekurd.net
putting huge pressure on Iraq's budget which derives
90 percent of its revenues from the energy sector.
With the consent of Baghdad, Ashti Hawrami,
the Kurdistan region's natural resources minister,
announced
earlier this month that it would begin exporting
crude oil for the first time on
June 1.
Revenues from the initial exports of 60,000 barrels
a day from Tawke field and another 40,000 from the
Taq Taq field later in June will be paid into Iraq's
federal account and then redistributed to the
provinces, as Baghdad wants.
The Kurd region will receive 17 percent of revenues
from the exports but key questions remain over who
will pay the foreign firms developing the fields.
Turkey's Genel Energy and Calgary-based Addax
Petroleum which jointly operate Taq Taq and
Norwegian oil firm DNO working in Tawke have
production sharing agreements, which Baghdad remains
vigorously opposed to.
"Our position is the same about the contracts in the
Kurdish region," said an oil ministry official who
requested he not be named due to sensitivity of the
issue.
"The minister himself said a few days ago that the
oil ministry is responsible for all contracts," he
said.
Copyright, respective
author or news agency,
AFP
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