Originally Posted by
Lunar
The viewpoint-economic conditions are not conducive to the adoption of a new law on oil in Iraq
Source : House life-20/06/2007
Can Observers of the ongoing debate on the law of Iraqi oil between Iraqi officials and experts on various positions, but optimistic in the future of Iraq, de****e the gruesome conditions suffered by now. In view of the substantive and positive attitudes of most of them, and ensure that declared contribute to the strengthening of Iraq's unity and national reconciliation serves.
It is hard to understand is the research into the details of this law is adopted, in light of the circumstances and factors of pressure and unfavorable, is unlikely to arrive at the best model for law be in the interest of Iraq and the foundation of a successful oil industry in the future support the process of economic and social development.
The bad security conditions that cause the death and displacement of many citizens, continues to attract scientists, and destroy the social fabric and the disruption of its human resources that are dearest from any other source, but the only resource growth. It must be a priority is to find political solutions to stop the violence and provide security and stability, to allow Iraqis Safa thinking in other cases. To the extent that any development of oil resources in the light of the current situation is very difficult, there is no harm in waiting.
The discussion of this law in light of the foreign military presence probably makes it vulnerable to challenge in the future before the judicial authorities, whether local or international, because of adoption under military occupation and countries have clear interests affected formula law to be regarded arbitrarily and nature. It is natural that the pressure these states in the directions that serve the interests of the political and economic strategy.
It seems that these countries are not neutral and certainly constitute a President in the ongoing deliberations on the law, especially as they push toward the adoption of a certain during this stage, has not entirely consistent with their national interests of Iraq, as seen by many inside and outside Iraq.
The group, which raises questions about the timing of putting this law, is that it comes before an important benefit of the Iraqi Kurdistan region of the referendum on the final status of this territory, in particular, representatives of the Territory formed the backbone of the team, which seeks to strengthen the powers of the regions and territories in the debate over the distribution of exploration, development and production of oil resources between regional authorities and the central authority in Baghdad.
And because what will be adopted in this regard will be evacuated at all regions of Iraq, in light of the facts which constitute self Special Territory's position that the Kurdish elements stand out from other regions of the above reasons, the law would probably be agreed to share oil resources between the central government and regional authorities.
However, any involvement of the regional authorities in the development of oil resources will ensure the entry of international oil companies in the development and production of oil as through contracts «partnership in the production», given that the oil emerging regional bodies lack the technical and financial capacities needed for self-development fields allocated to them.
This de****e the fact that foreign direct investment in the Iraqi oil sector is not feasible for Iraq in the event there is this building in the Iraqi national companies, especially that Iraq's oil extraction easy Among the less expensive crude oils in the world.
To have the technical capacity and energy required funding, it is imperative that firms have sufficient size to the size of the reserve and production capacity. This can only available in regional companies because the volume of Iraqi oil reserves does not justify the presence of such a large number of oil companies with the required capabilities in each of them.
As for some technical services that may be needed in some areas of Iraq, such as the rehabilitation of production processes and fields affected by the military operations, could be contracted with foreign companies specialized in services contracts do not require waiver of any part of the oil resources or undermine national sovereignty them.
To keep the oil sector completely under central authority does not necessarily mean monopoly National Oil Company oil and gas sector, especially the medium and long term, or loss of transparency, what worried him most Iraqi experts on the right, and push them to support the trend towards decentralization in the organization of the oil sector.
It can enhance transparency through the operation of the National Oil Company on a commercial basis or fully privatized within the appropriate regulatory controls. As can be established more than national companies capable technically and financially in order to ensure competition among them and enhance productivity and transparency. In light of the size of the reserve certainly now, perhaps to accommodate Iraqi oil industry three to four national companies to compete in all areas.
On the other hand, is the oil and gas proposed by the federal law, the appropriate framework for a partnership between the central and regional authorities in the organization of the oil and gas sector and management. It provides for regional authorities, in the event given appropriate powers, the possibility of pursuing the central administration of the oil sector and control.
Also it must be clarified that the allocation of the company (companies) National Oil does not necessarily entail sacrifice the state's sovereignty over its oil, or abandon the adoption of a national strategy for the development of these resources and their development. Since the government can, if the allocation of national oil companies in the future, to retain shares went enable it to maintain its sovereignty in this important sector facilities and institutions, what can be guaranteed under contracts for the production.
As for the exploitation of oil revenues, it agreed to a fair distribution for all Iraqi territories by population size is good in principle, as reflected in the keenness to strengthen the unity of the Iraqi people. Perhaps the practical translation of this principle in the methodology for economic and social development which focuses on reducing disparities between regions of Iraq, not in the index of income, but also in human development indicators, as defined by the Human Development Report of the United Nations. By employing all of central revenues, not oil revenues, but in achieving this important goal.
It may also used in oil revenues during the initial stages of the reconstruction process, in the rehabilitation of basic infrastructure and public services and development, as called for by a number of experts and spe******ts Iraqis. However, the bulk of these revenues must be used in the diversification of the productive base of the Iraqi economy and prepare for the post-oil era. In this regard, Iraq will require many foreign direct investment, particularly in high-tech areas, the development of industries with high added value. But all that is in a theory or wishful thinking unless there is security and stability prevail throughout Iraq.