Iraqi Oil – Critics from within

See:
http://www.iraqoilreport.com/the-biz/critics-from-within-1772/#respond


Excerpt:
The Iraqi Oil Ministry’s plan to boost oil and gas production via eight contracts up for bidding by international oil companies has run into a major roadblock: the head of the South Oil Co., Iraq’s largest producing state entity, has gone public with opposition.


Fayad al-Nema, director general of the SOC, told Ahmed Rasheed of Reuters top officials in Iraq’s oil production industry worry the contracts being offered for large scale foreign investment in Iraq for the first time in three decades are bad for Iraqis.


Iraq Oil Report is told at least 20 other higher ups in the operational side of the Oil Ministry have also criticized the plan, and the Iraqi Parliament’s Oil & Gas Committee is to hold a special session to discuss the procedure


Below are comments from Kamil Al-Adhadh:


Kamil Al-adhadh said:


Colleagues,


As Economists, I and many of my colleagues, have always maintained the rational position that the oil & gas resources in Iraq should be utilised to achieve sustainable development, and to help build up alternative non-oil industries in Iraq, so as to rid the economy of the so called “Dutch Disease”, of the rentier economy. Therefore, we stood up against long term contracting for Oil Extraction; i.e., leasing it to foreign oil companies and cartels for a decade or two. Such leasing would completely deny national sovereignty over oil production and its integration within the economy.


Hence, it militates against a strategy for sustainable development. For these reasons we stood up against PSAs; Production Sharing Agreements. Instead, we advocated Service Contracting, for short and medium terms, only, not for decades. Also, we called upon re-building our National Oil Companies, and mobilising existing national skills and talents, within and outside Iraq. This has always been our recommended strategy to the Iraqi Oil Ministry, MoO.


We have also, defended the position of Dr. Sharistani, the Iraqi Oil Minister, when he moved away from PSAs, and when he stood up firmly against the Regional Kurdish Authority which signed such damaging PSAs with some second grade Oil Companies, without even consulting with the Federal Government, and had, therefore, infringed upon the constitutional provision that Oil & Gas resources are the absolute ownership of all the Iraqi people. We are all, also, aware of the huge and complicated difficulties, facing the MoO to formulate the right policies and to upgrade output. Yet, despite these vagaries, the MoO, had achieved, during the last three years, some progress on various grounds.


Now, in light of the recent protests by the leading technical heads of the South Oil company, concerning the first round bidding to contract out a few huge fields in Zubair, West Qurna, and North & South Rumella, we can understand and support these protests, if they are directed against long term contracting, i.e., for 20 years or more, for the same reasoning we had already maintained against PSAs.


But, our perplexity is aroused by the way such crucial national issues are publicly discussed, or rather flanged out. These issues are amenable to cool, scientific and quantitative studies and discussions. Why, on earth, can we not sit with each other to discuss rationally these matters?

Why don’t we set up impartial expert committees, composed of well known and highly experienced and talented Iraqi professionals, who are squattered every where around the world, to investigate, study, assess and recommend, in the lights of Iraq`s long term interests, and its endeavour to achieve sustainable development?? Why should such vital national issues be used for confrontations and slandering? Why stubbornness and strife are our degrading mode of behaviour???


We just ask, why?? I like to direct these questions to all leaders, professionals and politicians.
Than you for listening.



Kamil AL-adhadh.


Ps: You may care to circulate, and pass this
- 16 June 2009 at 12:18 pm


See:
http://www.mees.com/postedarticles/oped/v50n30-5OD02.htm