New INOC put on hold
Submitted by Ben Lando on Wednesday, 30 September 2009No Comment
By BEN LANDO
Iraq Oil Report
BAGHDAD – The recreation of the national oil company will have to wait until after the elections and likely longer, until an oil law is approved, said the chair of the Parliament energy committee.
“The company will work according to the oil and gas law,” said Ali Hussein Belo, head of the oil and gas committee. “Therefore the law, it must come first. It is the main law.”
The national oil company was started in 1964 to take over the monopoly held by foreign oil companies. Although it was successful, Saddam Hussein cancelled the company in 1987, consolidating oil operations into the closely-held Oil Ministry.
In July the Council of Ministers sent a draft law to Parliament. Belo said the committee is sending a list critiques and recommendations to the speaker of Parliament to amend the draft law.
The Iraqi National Oil Company and the oil and gas laws, along with the reorganization of the Ministry of Oil and the revenue sharing laws are being considered as a package, according to most officials. None are expected to be passed soon.
The oil and gas law has been disputed since late 2006. The main issues are whether the nationalized oil sector should be privatized – and if so, to what extent? – and the level of federalism to be instituted in the oil sector.
Iraq’s Parliament has just resumed following a Ramadan break, and the main items are the 2010 budget and the laws regulating the January national elections. Meanwhile the already politicized government leadership is in hyper-drive, thus increasing the tension that has stalled oil-related legislation, decreasing the chances of its passage.
Submitted by Ben Lando on Wednesday, 30 September 2009No Comment
By BEN LANDO
Iraq Oil Report
BAGHDAD – The recreation of the national oil company will have to wait until after the elections and likely longer, until an oil law is approved, said the chair of the Parliament energy committee.
“The company will work according to the oil and gas law,” said Ali Hussein Belo, head of the oil and gas committee. “Therefore the law, it must come first. It is the main law.”
The national oil company was started in 1964 to take over the monopoly held by foreign oil companies. Although it was successful, Saddam Hussein cancelled the company in 1987, consolidating oil operations into the closely-held Oil Ministry.
In July the Council of Ministers sent a draft law to Parliament. Belo said the committee is sending a list critiques and recommendations to the speaker of Parliament to amend the draft law.
The Iraqi National Oil Company and the oil and gas laws, along with the reorganization of the Ministry of Oil and the revenue sharing laws are being considered as a package, according to most officials. None are expected to be passed soon.
The oil and gas law has been disputed since late 2006. The main issues are whether the nationalized oil sector should be privatized – and if so, to what extent? – and the level of federalism to be instituted in the oil sector.
Iraq’s Parliament has just resumed following a Ramadan break, and the main items are the 2010 budget and the laws regulating the January national elections. Meanwhile the already politicized government leadership is in hyper-drive, thus increasing the tension that has stalled oil-related legislation, decreasing the chances of its passage.