Iraq to issue oil tenders
Iraq will issue tenders for international oil companies to develop its existing fields this year, even if a long-awaited new law to regulate the energy sector is delayed, Oil Minister Hussein al-Shahristani said.
"Although we have been waiting for this new law for political reasons, if it is delayed we will go ahead and start discussions with IOCs, especially in current fields to increase production levels," he told an oil conference in Dubai on Saturday.
"There is no legislation vacuum. There is a prevailing law, which authorises us to carry out any field development contract. This we will be pursuing and you will see shortly the tendering calling for IOCs to work with us to develop current fields in addition to a gas masterplan," he said.
Asked how soon the tenders would be issued, Shahristani said "well before the end of the year."
Shahristani said last month that Iraq would call an open race for around a third of Iraq's prized fields in September, but only once the new federal oil law was passed.
Now it seems the tenders will be issued with or without the new law, which will decide how Iraq's third-largest proven oil reserves will be shared out and has been mired in political bickering.
A draft bill was approved by the Iraqi government in July after months of talks but has yet to be debated by parliament, which returned this month from its summer break.
Shahristani reiterated comments by other Iraqi officials that the oil law should be passed "within a few weeks", but many disagreements over the details persist.
The Kurdistan Regional Government has already forced the renegotiation of the bill and international oil executives privately say they are wary about entering Iraq before the new legal framework for the energy sector, which provides over 90% of Iraqi government revenue, is in place.
The delay in the law would not delay plans to develop the sector, which is in dire need of investment after a decade of sanctions and four years of violence since the US-led invasion of 2003.
"Iraq has an oil law. It has always had one and it is the prevailing law until the new one is legislated. The ministry of oil can sign any contract to develop capacity and increase oil production," he said.
"This is needed for the reconstruction." Source
"Although we have been waiting for this new law for political reasons, if it is delayed we will go ahead and start discussions with IOCs, especially in current fields to increase production levels," he told an oil conference in Dubai on Saturday.
"There is no legislation vacuum. There is a prevailing law, which authorises us to carry out any field development contract. This we will be pursuing and you will see shortly the tendering calling for IOCs to work with us to develop current fields in addition to a gas masterplan," he said.
Asked how soon the tenders would be issued, Shahristani said "well before the end of the year."
Shahristani said last month that Iraq would call an open race for around a third of Iraq's prized fields in September, but only once the new federal oil law was passed.
Now it seems the tenders will be issued with or without the new law, which will decide how Iraq's third-largest proven oil reserves will be shared out and has been mired in political bickering.
A draft bill was approved by the Iraqi government in July after months of talks but has yet to be debated by parliament, which returned this month from its summer break.
Shahristani reiterated comments by other Iraqi officials that the oil law should be passed "within a few weeks", but many disagreements over the details persist.
The Kurdistan Regional Government has already forced the renegotiation of the bill and international oil executives privately say they are wary about entering Iraq before the new legal framework for the energy sector, which provides over 90% of Iraqi government revenue, is in place.
The delay in the law would not delay plans to develop the sector, which is in dire need of investment after a decade of sanctions and four years of violence since the US-led invasion of 2003.
"Iraq has an oil law. It has always had one and it is the prevailing law until the new one is legislated. The ministry of oil can sign any contract to develop capacity and increase oil production," he said.
"This is needed for the reconstruction." Source
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