Iraqis Favor State Companies To Develop Oil Sector

AMMAN (Dow Jones)–Most Iraqis believe Iraqi companies rather than foreign firms should take the lead in the development of the country’s vast oil fields, the world’s third largest, according to a poll released Monday.

The poll also finds most Iraqis feel kept in the dark about the oil plans – with fewer than a quarter feeling adequately informed about the proposed new hydrocarbon law which will govern the country’s oil sector, whose revenues consist more than 90% of the national budget.
The poll, carried out in Iraq by a group of development and human rights organizations, is the first time ordinary Iraqis were asked their views on the contents of the controversial petroleum law, which the Iraqi government sent to parliament July 3 for final approval. The parliament adjourned debating the draft law until September when lawmakers meet again after a one-month recess.

Washington views the oil law as crucial to spurring national reconciliation and ending sectarian violence, and the U.S. administration has been pressing Iraq’s leaders to pass the law by September, as one of the political benchmarks to be achieved by the Baghdad government.

The law is facing substantial opposition from leading Iraqi political groups, veteran Iraqi oil experts and former oil officials as well from strong oil trade unions.

At the center of the law is a proposal to give multinational oil companies a role in developing Iraq’s oil fields, which contain some 115 billion barrels of proven oil reserves.

More than 63% of poll respondents said they would prefer Iraq’s oil to be developed and produced by Iraqi public sector companies rather than foreign companies, with 32% of those indicating a strong preference. Only 10% strongly preferred foreign firms, and 21% moderately, stated the survey carried out in the last two months in Iraq.

Zawya