Al-Ghad

As the Iraqi Cabinet has approved the draft oil law and passed on to parliament it has become crucial that Iraqi public opinion should be informed of the grave consequences of passing this draft law for the present and future generation of the Iraqi people. The people and parliament were kept in the dark of what was being drawn because the aim of this law is to deprive them of the main source of their livelihoods and well being.

For these reasons Al Ghad has published important documents regarding this draft Law.

Today Al Ghad is publishing a memo issued by a seminar held on 17 Feb. in Amman, Jordan, prepared by a number of Iraqi Oil experts about the draft Oil Law.

The Arabic statement can be read here.
Press ‘Read more’ to see the English press release of the seminar.

Al-Ghad

AMMAN – JORDAN
22ND FEBRUARY 2007

A gathering of former senior Iraqi oil officials , technocrats , experts and consultants have issued a statement February 21 that have criticized the apparent rush of the Iraqi government to conclude a controversial oil and gas law intended to organize the decision making structure within the Iraqi oil industry and allows and regulates the investments of foreign oil companies to develop the country’s vast oil resources .
The seminar was held in Amman , Jordan , February 17 and was attended by around fifty experts , most of whom are currently residing in Amman because of the deteriorating security situation in Iraq . The attendees included a former Minister of Oil , Qassem Taqy , a former Justice Minister , Malik D. Al-Hassan and former Minister of Trade , Mohammed Al-Juboory Who is also a former Director General of SOMO .
The seminar was arranged by the personal initiative of a four member steering committee chaired by Mr. Al-Juboory and the statement drafting committee included some other experts who have attended the seminar .
The statement emphasized the consensus of the seminar questioning the appropriateness of concluding a law of such vital importance in such a rush , under the deteriorating current security situation and without giving adequate time for Iraqi experts to discuss it’s provisions in a technical and professional manner .
The statement recommends that the law should be postponed till the relevant articles in the constitution are revised ; as stipulated in the current constitution , since any amendment will surely include the articles governing the management and control of the oil industry .
The statement included specific recommendations as well as proposed amendments to the articles of the draft of the law , as depicted in a January 15 draft that was used in the seminar . The most important of these recommendations and amendments were : criticism of the proposed composition of the Federal Council of Oil and Gas , the principal decision making body under this law , which is seen to be skewed in favor of the provinces and Regions ; The principal features of oil fields development tenders should be approved by the Federal Parliament , before they are issued , and all contracts of foreign investments should also be approved by the same body ; The gradual increase in the country’s production capacity by concentrating on the rehabilitation of the current producing fields , by relying on the National efforts and on self financing , followed by selective development of the discovered but not developed fields according to their economics and technical aspects adopting service and management contracts with foreign companies , always avoiding long term contracts with these companies .
The statement supports the re-establishment of the Iraq National Oil Company ( INOC ) and recommends that a law for that purpose should be enacted simultaneously with this law .
The Iraqi Oil law was scheduled to be completed by the end of 2006 according to repeated statements by the Iraqi Minister of Oil , Shehrestani , but differences with the Kurdistan Regional Government , principally over the approval of already signed contracts and the authority of signing new ones , have delayed the issuance of the law till now .
The law is being pushed for by the Bush administration and regarded as an important milestone on the road to Iraqi national reconciliation . U.S secretary of state Condi Rice , during her recent visit to Baghdad February 17 , have pushed the Iraqi government to get this law through quickly ; as quoted by the Washington post February 18 , saying “ I have heard that the law is complete before , and this time I hope it really is complete “ .

F.H.M.K. 22ND FEBRUARY 2007