Thursday, March 29, 2007
Foreign firms offer to develop Missan's oil fields
Oil
(Azzaman) - The authorities in the southern province of Missan say they have received several requests from foreign firms to develop the province’s gigantic oil fields. The officials refused to name the firms but said the relative stability which the province currently enjoys was luring both foreign and Iraq entrepreneurs to invest.
The province, which borders Iran, is among Iraq’s most impoverished with a rickety infrastructure. It was a battle scene in the eight years of Iraq-Iran war. “The provincial council has received offers from international and Arab firms to invest in the oil sector,” said Taha al-Dhaif, head of the Development Commission in the province. He said investors were also interested in developing the province’s tourist infrastructure and have made several offers to construct hotels and other tourist installations.
Some of the finest Iraqi marshes are situated in the province and the officials said the wetlands were flourishing once again and the authorities were considering ways to turn into tourist attractions. Dhaif said the council has an offer from a foreign firm to develop the massive West Gurna oil field, one of the largest unexplored oil fields in the country.
He said the council was keen to attract investors to help reduce the high unemployment rate and fight poverty. The province relies mainly on agricultural produce as its huge oil fields, with billions of barrels of proven oil reserves, remain undeveloped. Dhaif said the province was in need of power stations and it has already received an offer to construct one. There have been requests to construct housing apartments, and rehabilitate idle industries such as the prefab factory.
Iraq has the third largest proven oil reserves in the world behind Saudi Arabia and Iran. It is total proven reserves are estimated at 112 billion barrels, with as many as 220 billion barrels of resourced deemed probable. Of the country’s 74 discovered and evaluated oil fields, only 15 have been developed.
Some of the finest Iraqi marshes are situated in the province and the officials said the wetlands were flourishing once again and the authorities were considering ways to turn into tourist attractions. Dhaif said the council has an offer from a foreign firm to develop the massive West Gurna oil field, one of the largest unexplored oil fields in the country.
He said the council was keen to attract investors to help reduce the high unemployment rate and fight poverty. The province relies mainly on agricultural produce as its huge oil fields, with billions of barrels of proven oil reserves, remain undeveloped. Dhaif said the province was in need of power stations and it has already received an offer to construct one. There have been requests to construct housing apartments, and rehabilitate idle industries such as the prefab factory.
Iraq has the third largest proven oil reserves in the world behind Saudi Arabia and Iran. It is total proven reserves are estimated at 112 billion barrels, with as many as 220 billion barrels of resourced deemed probable. Of the country’s 74 discovered and evaluated oil fields, only 15 have been developed.
Labels: foreign firms, Maysan, Missan, oil fields, Taha al-Dhaif, West Qurna
Wednesday, February 28, 2007
Unions protest new oil law skewed in favour of foreign firms
Oil
(IPS) The U.S.-backed Iraqi cabinet approved a new oil law Monday that is set to give foreign companies the long-term contracts and safe legal framework they have been waiting for, but which has rattled labor unions and international campaigners who say oil production should remain in the hands of Iraqis. Independent analysts and labor groups have also criticized the process of drafting the law and warned that that the bill is so skewed in favor of foreign firms that it could end up heightening political tensions in the Arab nation and spreading instability. For example, it specifies that up to two-thirds of Iraq's known reserves would be developed by multinationals, under contracts lasting for 15 to 20 years.
According to local labor leaders, transferring ownership to the foreign companies would give a further pretext to continue the U.S. occupation on the grounds that those companies will need protection. This policy would represent a u-turn for Iraq's oil industry, which has been in the public sector for more than three decades, and would break from normal practice in the Middle East.
According to local labor leaders, transferring ownership to the foreign companies would give a further pretext to continue the U.S. occupation on the grounds that those companies will need protection. This policy would represent a u-turn for Iraq's oil industry, which has been in the public sector for more than three decades, and would break from normal practice in the Middle East.
Union leaders have complained that they, along with other civil society groups, were left out of the drafting process despite U.S. claims it has created a functioning democracy in Iraq. Under the production-sharing agreements provided for in the draft law, companies will not come under the jurisdiction of Iraqi courts in the event of a dispute, nor to the general auditor. The ownership of the oil reserves under this draft law will remain with the state in form, but not in substance, critics say. On Feb. 8, the labor unions sent a letter in Arabic to Iraqi President Jalal Talbani urging him to reconsider this kind of agreement.
The law was prepared by a three-member Iraqi cabinet committee, dominated by the Kurds and the Shiites. It is now expected to be ratified by parliament because the powerful faction leaders in the government have cleared it. The first draft was seen only by the committee of the Iraqi technocrat who penned it, nine international oil companies, the British and the U.S. governments and the International Monetary Fund. The Iraqi parliament will get its first glimpse next week.
Labels: draft oil law, foreign firms, privatisation, unions
