Parliamentary Committee reveals proposal to establish three oil companies
An oil field in the Kirkuk in northern Iraq. Photo: The New York Times.
Baghdad (IraqiNews.com) – The Parliamentary Oil and Gas Committee revealed on Monday proposals within the draft oil and gas law to establish three companies including Kurdistan Oil Company, according to the Iraqi News Agency (INA).
Committee member Ali Shaddad Al-Faris mentioned that the government took a step forward in the oil issue with Kurdistan by activating the work of the supreme committee specialized in the negotiation with the regional government, INA reported.
Al-Faris explained that the supreme committee is headed by the Minister of Planning, and includes the Minister of Oil, the director of State Organization for Marketing of Oil (SOMO), the head of the General Authority for Border Crossings, advisors and experts, INA mentioned.
Al-Faris pointed out that the work of the supreme committee will be activated strongly, and will be followed up by the Parliamentary Oil and Gas Committee.
Al-Faris indicated that the regional government will have to negotiate with the supreme committee to reach a draft oil and gas law after the Federal Court ruled earlier that the oil and gas law in Kurdistan is unconstitutional.
Al-Faris revealed that the law will regulate the relation between the federal government and the oil producing governorates.
Al-Faris affirmed that the law will guarantee the rights of oil producing governorates including Basra governorate.
Al-Faris added that the proposals include the establishment of an oil company headquartered in Kurdistan where all its operations directly linked to the Ministry of Oil, as well as another company specialized in gas, and a third company specialized in oil refineries.