Iraq’s new oil minister vows to promote transparency in oil industry

24-05-06

Iraq’s new oil minister said he would seek clear laws designed to attract billions of dollars in foreign investment and vowed to promote a culture of transparency in the country’s shattered oil industry.
In remarks that could put him on a collision course with other political leaders, Hussain al-Shahristani said oil deals with foreign firms struck by regional authorities, such as one reached in the Kurdish north earlier, should require backing from the central government.
“The first thing we are going to work on is an investment law to reassure the big oil companies so that they work in Iraq,” he told.

Shahristani, a nuclear scientist who lacks oil industry experience, said he was prepared to make tough decisions to tackle a host of problems, including rebel attacks on oil pipelines and corruption that has robbed Iraqis of billions of dollars of oil revenues.
“We should have specific laws which put the oil ministry in Baghdad in charge of all operations starting from exploration, fields development, production, exports and signing contracts,” he said two days after the announcement of Iraq’s first full-term government since the fall of Saddam Hussein in 2003.

Oil multinationals eyeing Iraq’s giant largely undeveloped oilfields, are waiting until a new investment code with a legal and regulatory framework is in place, before they venture in. Shahristani said the oil ministry would be technically ready to present the law to parliament in three months but political backing was needed.
“There are some articles in the constitution which could be explained in many ways. We need to get national agreement, especially from those in charge of the oil in the regions and provinces. We will not put it before parliament before getting political approval,” he said.

Shahristani, who spent 11 years in prison under Saddam, said oil sales from state marketing company SOMO would be transparent and secret negotiations would not be tolerated following years of back-room deals.
“… everything related to oil in Iraq will be announced transparently and publicly and there will be no secret talks and contracts.”
 

 

Source: arabtimesonline.com