Iraqi oil Minister says no need for the national oil company

By Ahmed Rasheed

BAGHDAD. Sun, July 3, 2011 1 pm EDT

Baghdad (Reuters) - the creation of an Iraqi national oil company new to run the energy of the OPEC member is not essential and could be confused with the work of the Ministry of oil, Iraqi oil Minister said Sunday.

The Iraq cabinet has approved a draft law establishing a new national oil company in 2009, but the legislation has languished in the political turmoil and a change of Government in the war-battered nation.

"If this Act was passed, and then I ask"What would it add to the oil sector of the Iraq?"" I say nothing, "Minister of oil-Kareem Abdul Luaibi, said dans a speech to Parliament's oil and Energy Commission. "Our companies are the same job." "Not necessary for the establishment of this company".

Creating long-awaited oil of the Iraqi National (INOC) company, which could revive a State Enterprise established in the 1960s and merged with the Department of the Iraqi oil in 1987, had been a central element of the plan of the Iraq to turn around its oil sector who have difficulties to take advantage of its vast mineral wealth.

A set of laws, including a modern law of hydrocarbons, a division of revenue Act, and legislation to restructure the oil Ministry sparked fierce debate and disagreement between the political parties for years.

The semi-autonomous region of Kurds in the North was moving aggressively to develop the oil and gas reserves on its territory, clashes with the central Government on who has the authority to sign oil contracts.

Amendments to the oil bill are considered by the Committee of the energy of the front office it refers to the Act to the Parliament.

Luaibi criticized INOC described in the Bill, functions that include join in the exploration, drilling, development and production contracts, contracts of carriage and maritime oil and gas.

"If we have two organizations with the use of petroleum marketing, then this will definitely create problems,", he said.

Thamir Ghadbhan, Adviser to Prime Minister Nouri al-Maliki, defended high energy bill and said that reviving INOC is vital for the development of the energy sector.

"The creation of an independent National oil company is essential to develop the energy sector the Iraq, with the Ministry of oil... to make the oil policy,"Said Ghadbhan.""

(Reports by Ahmed Rasheed;) (Editing by Jim Loney and Will Waterman)