Iraqi Paper on Plans to Develop Joint Oil Fields With Iran, Kuwait

Text of report by Tariq al-A’raji in Baghdad published by Iraqi Media Network weekly newspaper Al-Sabah on 23 April

The Oil Ministry has drawn up a plan to develop the joint oil fields with both Iran and Kuwait through drilling new wells and repairing existing wells to help increase the country’s production of crude oil. It also confirmed that the imports of oil by-products dropped significantly during the past year and this year.

Abd-al-Karim al-Aybi, inspector general of the Oil Ministry, told Al-Sabah that the rates of achievement in oil projects were low over the past years, especially in important projects, for several reasons, most important of which are the bad security situation, the delay in releasing funds, and the complicated procedures that are followed in concluding contracts. He added that the instructions issued by Prime Minister Nuri al-Maliki, to form a joint committee between the oil and electricity ministries, has removed many obstacles that were faced by the two sectors [oil and electricity]. In addition, many steps have been taken, such as facilitating the disbursement of funds to the two ministries.

Al-Aybi said that the ministry has drawn up a plan to develop the joint oil fields with both Iran and Kuwait through drilling new wells and repairing existing wells. He noted that the joint fields with these countries had been subject to joint investment agreements. However, border markers have disappeared due to wars. The government has formed joint committees with these two countries to set up border markers, and negotiations to implement the agreements have actually started.

As for fighting administrative and financial corruption, the inspector general revealed the formation of a council for fighting corruption. The council meets every week to end this phenomenon in all key sectors of the state. It is made up of the chairman of the Integrity Committee at the Council of Representatives, the secretary of the Council of Ministers, the head of the Integrity Commission, and the head of the Financial Control Bureau. Its members include the inspectors general at all ministries. The council is stepping up its work to eliminate all forms of corruption.

He also said that the ministry has succeeded in reducing the imports of oil by-products. The evidence of this is that imports of oil by-products totalled around 4.5bn dollars in 2005, compared to 2.3bn dollars in 2006. The imports of oil by-products dropped to 1.7bn dollars in 2007, and they are expected to drop further this year.

He noted that the strange thing is that imports have dropped despite the drop in refining capacities. This is evidence that the phenomenon of corruption has been reduced in the distribution sector. Another evidence of fighting corruption is that more than 10 million litres of gasoline used to be supplied daily to the capital, Baghdad, during the stifling gasoline crisis, which was worsening day after day. Now, however, only 4.5 million litres are supplied to the capital, and there are no signs of a crisis.

He said that as a step to encourage the private sector, the ministry has invited those interested in setting up filling stations in Baghdad City to submit their offers. However, the submitted offers indicated that these stations will be set up in the periphery of Baghdad, and not in the centre of the capital. Therefore, the ministry has rejected those offers because such stations are exposed to fraud, and it is difficult to control them. He stressed the need for the Oil Ministry to adopt the construction of filling stations in the centre of the capital at this time, because most of them are old and worn-out, even if the ministry plans to privatize the distribution sector in the future.

In another development, the Gas Filling Company has transferred contract-based staff to the payroll of permanent staff at the company. In a press statement, Amir Abd-al-Jabbar Isma’il, general manager of the company, said that the company has placed the sixth group of temporary workers, who number 38 employees in Baghdad and the governorates, on the payroll of permanent staff. He noted that the total number of employees, who have benefited from this, reached 630 employees during the past period. He added that the concerned committee at the company is currently rehabilitating the first groups of the previous period.

Originally published by Al-Sabah, Baghdad, in Arabic 23 Apr 08.

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