Monday, September 11, 2006
Deputy PM calls for international oil partnerships in Iraq
Commerce
During the U.S. and U.N. sponsored Iraq donor meeting held on Sunday in Abu Dhabi to discuss The Compact for Iraq - a five-year plan to boost Iraq's economy, Deputy Prime Minister Barham Saleh, a Kurd, called for partnerships with international companies to boost his country's oil industry. He admitted that one of the obstacles were disputes between local officials and the central government over who would control oil proceeds. He added that he was hopeful that oil would be a "unifying force for Iraqis rather than a resource to fight over."
Saleh said Iraqi leaders will have reached an agreement on a long-awaited hydrocarbon law that could usher in huge investments by foreign companies in Iraq's oil sector by the end of 2006. Iraq's goal is to double the current crude production of 2.5 million barrels per day by 2010, Saleh said.
Large companies have told the U.S. government they are willing to send crews to Iraq to explore and pump oil — regardless of the violence — as long as there are legal ground rules for their participation, said U.S. Deputy Treasury Secretary Robert Kimmitt.
The deputy prime minister said that Iraq needs to push liberalisation and open her markets. Iraq's proven oil reserves stand at about 115 billion barrels, the world's third largest after Saudi Arabia and Iran.
Saleh said Iraqi leaders will have reached an agreement on a long-awaited hydrocarbon law that could usher in huge investments by foreign companies in Iraq's oil sector by the end of 2006. Iraq's goal is to double the current crude production of 2.5 million barrels per day by 2010, Saleh said.
Large companies have told the U.S. government they are willing to send crews to Iraq to explore and pump oil — regardless of the violence — as long as there are legal ground rules for their participation, said U.S. Deputy Treasury Secretary Robert Kimmitt.
The deputy prime minister said that Iraq needs to push liberalisation and open her markets. Iraq's proven oil reserves stand at about 115 billion barrels, the world's third largest after Saudi Arabia and Iran.
COMMENT: It is likely to take time before a clear law is passed to enable foreign oil companies to operate in Iraq because there is a deadlock between the different groups in Iraq. The Kurds in the north and some Shias in the south want regional control, whereas the Sunni Muslims and most of the central Baghdad government want to retain national control. COMMENT ENDS.
