Iraq to adopt new oil policy bringing in majors: expert

[Barrett808]

DUBAI (AFP) - Iraq is drawing up plans to involve the private sector and foreign oil majors in its state-run oil industry in order to generate funds for rehabilitation and expansion in the sector estimated at 50 billion dollars over 10 years, an Iraqi oil expert said.

The government alone cannot come up with enough money to restore the oil industry, "the power house of the Iraqi economy," which has been left run down by successive wars and years of UN economic sanctions, Sabah Jumah, a former oil ministry director-general, told a conference on the Iraqi oil sector here.

A revived state-owned Iraq National Oil Company (INOC) -- a body abolished in 1987 by ousted president Saddam Hussein (news - web sites) -- would have "full ownership and control of its existing producing assets", said Jumah who now runs an oil consultancy in Baghdad.

"Ownership of the key pipeline network for both oil and gas, including export terminals, will (also) remain in state hands for the foreseeable future," he said.

But the private sector will play the big part in "new activity, exploration, development of undeveloped fields, major refinery refurbishment, new refinery construction and petrochemicals ... Joint ventures between International Oil Companies (IOCs) and Iraqi private sector companies will be encouraged."

(more)

http://news.yahoo.com/news?tmpl=story&u=/afp/20040926/ts_afp/iraq_rebuild_oil_040926193651

Ah, the wonders of Bremer's 100 Orders keep coming.