Iraqi PM Asks Parliament Not To Question Oil Minister

Date : 11/03/2009 @ 1:28PM
Source : Dow Jones News
Stock : BP PLC (ADS) (BP)
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Iraqi PM Asks Parliament Not To Question Oil Minister

DOW JONES NEWSWIRES

Iraq's Prime Minister Nouri al-Maliki Tuesday asked the Iraqi Parliament not to question his oil minister, Hussein al-Shahristani, saying it would discourage international oil companies from investing in Iraq.

"Questioning the oil minister by the parliament would communicate a discouraging message to international companies willing to invest in Iraq," Maliki said in a letter to lawmakers.

The country's 250-seat Parliament is scheduled to hold a special session Nov. 11 to question Shahristani over claims he has mishandled the country's oil resources.

Shahristani, who faced questions in parliament in June, has been accused by lawmakers of failing to boost oil production during more than three years as oil minister.

Iraq's crude oil production hasn't reached the pre-U.S.-invasion levels of 2.8 million barrels a day. The country is producing about 2.45 million barrels a day.

However, oil analysts say Shahristani's credibility has been boosted over the past few weeks after international companies started negotiating for contracts to develop oil fields.

Tuesday, Shahristani signed a $15 billion deal with BP PLC (BP) and China National Petroleum Corp. to develop the Rumaila oil field in southern Iraq. Monday, he signed an initial agreement with Italy's Eni SpA (E) to develop the Zuabair oil field after the company agreed to the terms laid out in the country's first post-war licensing auction in June.

Shahristani is also hoping to sign in the next few days a multibillion-dollar contract with one of three international consortia competing for the West Qurna-1 oil field.

If all three of these fields are developed, they have the potential to increase Iraq's crude oil output to 6 million barrels a day within six years, he said.

-By Hassan Hafidh, Dow Jones Newswires; + 962 799 831 831; hassan.hafidh@dowjones.com

 
 

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