A statement on the random license rounds for oil and gas fields

A statement on the random license rounds for oil and gas fields
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Published October 24th, 2010 - 13:39 GMT

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While Al Iraqiah Bloc values the efforts of Ministry of Oil employees in encouraging and attracting investments, it strongly condemns the outgoing government's actions to offer license rounds with long-term contracts and overstepping its constitutional mandates. These actions are also considered illegal in light of the current constitutional and political vacuum engulfing the country, which exposes the Ministry and all parties concerned to legal questioning by the Council of Representatives, which may also lead to the cancellation of these contracts.

Al Iraqiah condemns the signing of long-term contracts with no reference to current laws such as Law 97 of 1967, which requires the consent of the Iraqi Parliament in the absence of a Federal Oil and Gas Law.

Al Iraqiah expresses its concern towards the unilateral actions of the Federal Government in signing contracts and treaties on a wide scale in the absence of a clear oil strategy and without the enactment of Hydrocarbon, Finance, Revenue-Sharing and Investment Laws, which is an unjustifiable breach due to the inability of the government, for four and half years, to legislate such important laws, which are vital for the future of Iraq.

In the absence of a national policy and strategic plan for the gas industry on a federal level, which the government can utilise to liaise with relevant ministries to ensure and secure the energy needed for national industries and electricity-generating, as well as the need to evaluate the surplus for export to global markets, we witness personally-motivated and politicised decisions based on studies carried out by the licensed companies, which strips the economic policy decision-making of its independence by relying on commercial companies' studies and does not ensure the best revenues for the Iraqi people as specified in the Iraqi Constitution 

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