Baghdad (Platts)--25Jul2007

The Iraqi parliament unanimously voted Tuesday approving a draft law that
would allow foreign companies to invest in the construction of oil refineries
in the country.

     Under this law, the central government and the regional authorities will
be able to independently deal with these companies to sign contracts and grant
licenses.

     The law stipulates that Iraq's oil ministry should supply the crude to 
the investors at the refinery at the same price as it would be exporting it,
minus the price of transport.

     The investor can decide at what price to sell the products within the
country and abroad. It can also use the depots and Iraqi ports in accordance
with the contracts signed.

     The law is one among many being discussed by the parliament, whose
members are trying to complete the coting on the law before the start of their
leave in August.

     The law is aimed at encouraging the private sector to participate in the 
country's oil industry including the downstream sector. The law states that
the companies have to ensure that 75% of its manpower is Iraqi. They will also
be required to submit periodical reports to the oil ministry. They can rent
the land on which they want to set up the refinery from the state.