Open Letter From Iraqi Oil Experts To Parliament
The following open letter was sent on 5 March to the Speaker and members of the Iraqi Parliament by 61 senior Iraqi oil professionals who have worked in the Iraqi oil industry since the 1960s. The unofficial English translation was provided by the authors.
THE HONORABLE PRESIDENT OF THE IRAQI COUNCIL OF REPRESENTATIVES THE HONORABLE MEMBERS OF THE IRAQI COUNCIL OF REPRESENTATIVES Warm greetings,
A few days ago, the Council of Ministers approved the draft of the oil and gas law and it was referred to your esteemed council to discuss it for the purpose of its approval and enacting. In this respect, we the Iraqi oil experts located outside the country, would like to emphasize the country’s need for a law that organizes the activities of the oil sector and insures the optimum utilization of the oil wealth. But after a detailed review of the draft of the law and its discussions in a seminar held for this purpose in Amman on 17 February 2007, it was noticed the existence of many loopholes and ambiguities that should be paid attention to and remedied by your esteemed council for the purpose of enforcing this law in a way that leads to its successful implementation transparently and efficiently and to achieve the highest national interest. At the same time that we wished that public opinion and the nongovernmental organizations were allowed to review the draft of the law, as well as the oil cadres that are specialized in this aspects, to study and enrich it before it is submitted to your esteemed council to discuss its enacting, we would like to emphasize our opinion that there was a rush in its issuance under the present complicated circumstances prevalent in our dear country. The seminar in Amman came out with a package of recommendations; we summarize them as follows:
1. There is a noticeable rush in the issuance of the law in the present time. It is preferred that it should be delayed until the amendments to the constitution, according to Article 142, are concluded, and to give more time to study and discuss it in a technical and professional way, since it is noticed the absence of the contributions of the specialized Iraqi expertise that had the honor of advancing the building of the universally acclaimed Iraqi oil industry, as well as the absence of the opinions of the nongovernmental organizations and the professional trade unions in the discussions and enrichment of the draft of the law during the period of its formulation.
2. The support of the directions adopted in the draft of the law for the need to restructure the Ministry of Oil and the reestablishment of the Iraq National Oil Company, with the necessity of taking into account the clarity of responsibilities and the avoidance of dualities.
3. It is noted that there is a clear fault in the structuring of the Federal Council of Oil and Gas and in the Independent Advisors Bureau that attempts should be made to rectify to ensure the efficiency of performance, transparency and high professionalism, especially concerning the emphasis on ”taking into consideration all the entities of the Iraqi people,” which implies the deepening of the quota principles; as well as rectifying the process of selecting the members of the Advisors bureau and their period of service.
4. The necessity of revising the exemption of the processing and the service sectors from this law. It is preferred that they should be included in the present time or endeavor to enact a special law for them in parallel with the care taken to enact the current oil and gas law.
5. Review the authorities given to the Regional Commission to insure its balance with the federal authorities, and to include provisions to ensure the adherence with the federal plan and the unity of decisions; to shut the door on competing foreign companies not to infiltrate the national unity; that review may be considered in the light of the impeding constitutional amendments.
6. We anticipate that the motive behind the issuance of this law is based on the increase of the production capacity through the attraction of foreign investments, in this regards we feel and recommend to plan the increase of the capacity gradually starting with the rehabilitation of the currently producing fields by national effort (Iraq National Oil Company), followed by the development of the giant discovered but not developed, or partially developed fields, and to schedule the priority of their development according to their capacities and development costs irrespective of their geographical locations through service or management contracts with companies possessing the requisite efficiency and technical ability and as the need arises, and to avoid long term contracts with foreign companies in the present time.
7. Continue with exploration activities through the national effort, considering its high rate of success, via self financing or through soft loans, especially for blocks of high probability of success and to limit the licensing contracts, in the forms of exploration, development and production, to areas of low probability of success.
8. Avoid the entry into long term commitments with international companies in exploration, development and production contracts before the provision of suitable security situations to insure that the companies carry out implementation work; and in any case, we recommend that contracts with foreign companies should be submitted to your esteemed council for approval.
9. As for financing, and in light of the gradual increase in production rates for the whole of Iraq, it is suggested that the financing should be principally from the oil revenues and from foreign sources based on deferred payments by oil. As for the processing and service sectors, it is possible to provide the required capital by entry in joint ventures with local and foreign entities as required. At the end of this letter we would like to emphasize our readiness to participate in the enrichment of this important law and laws related to it, confident that your esteemed council will deal with it with the patriotic sense entrusted from you and to override the national interest on all other political and sectarian concerns in this difficult and historical conditions that our dear country is passing through, and to work for the delay of this law until it is enriched with the required necessary amendments.
With our esteemed regards and respects, 5 March, 2007
Dr Ibrahim Abd alKarim Rashid Former DG Oil
Dr Ikram alHaq Bakir Legal Advisor
Dr Thamir alUqaili Former DG Oil
Hazim alSultan Former DG Oil
Hasan Jawad alHilli Former Logging Operations Director
Dr Khalid alShimmirri Economics Advisor
Rajih Muhyi alDin Yusuf Former DG Oil
Rad Hasan alAzzawi Former Assistant to DG Oil
Dr Riyad alDabbagh Former Dean of University Geological Consultant
Sad Allah alFathi Former DG Oil
Samir Kubba Oil Expert Oil
Samir Zahrun Oil Expert Oil
Sad Salih alZubaidi Former DG Oil
Sharif Muhsin Ali Former DG Oil
Sabri Abd alRazzaq Kadhim Senior Advisor Oil
Saib Bahjat Chief of Engineers Oil
Sabah al Mukhtar Legal Advisor Oil
Sabah Yasin Awni Senior Advisor - Finance
Dhia Shamkhi alBakka Former DG Oil
Tariq alAni Former DG Oil
Tariq alIrhiyim Oil Expert Oil
Tariq Shafiq Consultant (Founding Member of INOC) Oil
Dr Tallal Ashur Kanaan Former DG Oil
Abd Allah Yunis alKairi Former Chemical Industries Advisor -Industry
Dr Abd alIlah Muslih Former DG Oil
Uthman Abd alBaqi alRawi Former DG Oil
Issam AlChalabi Former Minister Oil
Ali Ajam Former DG Oil
Ali Rajab Former DG Oil
Imad Muhammad Ali Kubba Former DG Oil
Irfan Zaki Amin Former DG Oil
Azzam Bakir Yahya Former DG Oil
Abd alSalam alKaisi Former DG Oil
Ghazi Sabir Ali Former DG Oil
Ghassan Ahmd Rasim Former Head of Legal Department - Oil
Ghassan alHadban Former DG Oil
Dr Falih Hasan al Khayyat Former DG Oil
Falih Muhsin al Athari Chief of Department - Oil
Firazdaq alHaddad Former Deputy DG Oil
Faisal Salman Ghali alTimimi Deputy Minister / Former Geologist Ministry of Industry
Qasim Taqi al Uraibi Former Minister Oil
Qasim Abd alWahab Former Chief of Geologists Oil
Qahtan Hamid alAnbaji Former Deputy Minister Oil
Dr Kamil alAdhadh Financial Advisor Finance
Karim alShammaa Former DG Oil
Kamal alQaisi Economics Expert Oil
Lafta al Shadhan Oil Expert Oil
Luay Muhdhir Bashi Former DG Oil
Dr Mahbub alChalabi Geological Consultant Oil
Muhammad Ali Zaini Oil/Economic Expert Oil
Muhammad Mustafa al Jiburi Former Minister of Trade / Former DG Oil
Dr Muhammad Mahmud al Jiburi Former DG Industry
Muhammad Yunis alUbaidi Former DG Oil
Muhammad Abud al Saadi Former Expert Oil
Mahmud Hamid Ahmad Former DG Oil
Mahmud Muhdhir Bashi Engineer and Former Chief Executive of Organization Oil
Maath al Fayyath Expert Oil
Muthanna Abd alMuniim alDuri Former Deputy Head of Department Oil
Dr Mazin Muhammad Ali Juma Former Deputy Minister Oil
Nuri alAni Former DG Oil
Walid Tawfiq alDabbas Former Financial Director Oil