Petrel Resources - moderated discussion/research part II
Fatgreek - Tue, 26 Dec 06 :
Iraqi officials agree on an oil law
MENAFN - 26/12/2006
(MENAFN) Sources said that an oil law was agreed upon by Iraqi officials that gives the regions the right to negotiate contracts for oil fields with foreign investors, however the final decision will be made by the central government, Iraq Directory said
Sources stated that the Iraqi Prime Minister agreed on the draft law which is awaiting the political approval and the adoption of the Cabinet. The added that the law calls for the formation of a national council of oil headed either by the Prime Minister or the Deputy Prime Minister and has the right to reject deals of oilfields.
Iraq is in great need for foreign investment to revive its shattered economy, which relies heavily on revenues from oil exports, especially that the country has the third largest oil reserves in the world.
The law calls for the conversion of the two Iraqi oil companies, turning into a holding company that has its own production units for managing the different areas of the sector.
