Iraq to open oil sector to more foreign firms
Monday, 10 September 2007
NICOSIA, Sept 9 (AFP): A former Iraqi oil minister says the future development of the country's rich oil reserves will include a wide range of foreign companies, and not just US
contractors. Thamir Ghadhban told the Middle East Economy Survey (MEES), a Nicosia-based specialist industry newsletter, that when the competition for contracts begins, foreign oil companies will have
to form a consortium to enter the bidding. "We believe in the benefits of diversification," Ghadhban said in the interview.
"We want the maximum number of international oil companies to work in Iraq to help in providing technical expertise and management skills and financial capabilities, but also to help in enhancing the strategic balance of Iraq."
After the US-led invasion of Iraq in 2003, many observers assumed that US firms would automatically win most oil development contracts, MEES said.
Ghadhban is a leading candidate to head the Iraq National Oil Company, set to be re-established once a draft oil law receives parliamentary approval. The INOC will most likely be a partner in a consortium with the foreign firms.
Unlike most state oil companies, however, the INOC "will not have a monopoly on Iraqi land in terms of exploration," Ghadhban said.
Iraq's oil infrastructure has been hit by decades of under- investment as a result of successive Gulf wars, 13 years of UN sanctions and the rampant insecurity that followed the US-led invasion in 2003.
Washington regards passage of the controversial oil legislation as key to efforts at national reconciliation in the country which is wracked by an insurgency and sectarian violence.
contractors. Thamir Ghadhban told the Middle East Economy Survey (MEES), a Nicosia-based specialist industry newsletter, that when the competition for contracts begins, foreign oil companies will have
to form a consortium to enter the bidding. "We believe in the benefits of diversification," Ghadhban said in the interview.
"We want the maximum number of international oil companies to work in Iraq to help in providing technical expertise and management skills and financial capabilities, but also to help in enhancing the strategic balance of Iraq."
After the US-led invasion of Iraq in 2003, many observers assumed that US firms would automatically win most oil development contracts, MEES said.
Ghadhban is a leading candidate to head the Iraq National Oil Company, set to be re-established once a draft oil law receives parliamentary approval. The INOC will most likely be a partner in a consortium with the foreign firms.
Unlike most state oil companies, however, the INOC "will not have a monopoly on Iraqi land in terms of exploration," Ghadhban said.
Iraq's oil infrastructure has been hit by decades of under- investment as a result of successive Gulf wars, 13 years of UN sanctions and the rampant insecurity that followed the US-led invasion in 2003.
Washington regards passage of the controversial oil legislation as key to efforts at national reconciliation in the country which is wracked by an insurgency and sectarian violence.