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It will soon be approved in Parliament.. What do you know about the National Oil Company Law?
June 20 2021
The disengagement of the current oil companies will be applied to be owned by the National Company (Facebook)
Ultra Iraq - Editorial Team
The Parliamentary Oil and Energy Committee revealed the details of the Iraqi National Oil Company draft law, confirming that it will soon be included on the parliament’s agenda for legislation, while questions are asked by experts and observers about the feasibility of this law, and why the oil and gas law was postponed to the next parliamentary session, while This bill will be voted on in the current session.
The Parliamentary Oil and Energy Committee says that the postponement of the oil and gas law was decided to give the next parliament an opportunity to be scrutinized further.
A member of the Parliamentary Oil and Energy Committee, Rebwar Taha, said in a statement to "Ultra Iraq", that "the law will establish a public company called the National Oil Company, and it will enjoy legal personality and financial and administrative independence, as it is directly linked to the Council of Ministers, indicating that it" will have branches in the capital. Baghdad and the oil-producing provinces, as well as offices inside and outside the country.
And the representative indicated that "the law contains 9 articles among its objectives, conditions for its establishment and the tasks entrusted to the company, pointing out that" its aim is to optimize the exploitation of oil and gas resources in the fields of exploration and the promotion of oil and gas manufacturing industries to provide good returns to the state treasury.
He added, "The company will, in accordance with its law, develop productive and discovered undeveloped fields, in addition to concluding exploration, production and export contracts in accordance with the state's policy, and among its tasks will be managing service contracts concluded for licensing rounds."
The deputy justified the postponement of the oil and gas law, in return for passing the National Company Law, as "it came according to the priority and importance of this law, and because the oil and gas law needs further study and agreements on it," adding that "the postponement of the oil and gas law was decided to give an opportunity to the next parliament to be audited properly. Larger".
As for the allocated funds, Taha explained, “The company’s capital will be available through the value of the fixed assets of the owned companies, and their value will be determined by a consulting office chosen by the National Company’s Council with the approval of the government, noting that there are 400 billion dinars that will represent operating capital that the Ministry of Finance will pay, and that "The company itself may increase its operating value according to its needs, in addition to the possibility of borrowing from inside or outside Iraq in order to finance its oil investments."
Regarding the series of ranks and the company’s board, the committee member said that it “will be headed by an employee with the rank of minister and holder of an initial university degree, provided that he has experience and specialization in the field of energy with a service of not less than 25 years and is appointed for a period of 5 years, indicating that “the president will have two vice presidents, first and second.” The same conditions, but with a service of not less than 20 years, their names are proposed by the president of the company and approved by the Council of Ministers.
Taha pointed out that "the rest of the members, 3 personalities of the boards of directors of companies owned by the membership of the board of directors of the National Company will be selected, provided that the Chairman of the Board of Directors of the Basra Oil Company and the National Oil Marketing Company will be among them, and the third member is chosen from among the extractive companies owned and according to the size of Production and periodically for a period of one year and upon nomination by the president, explaining that “3 experts of special degrees are also selected for membership of the council, provided they specialize in the fields of energy and oil.”
Taha pointed out that "the law of the National Oil Company, which will be approved soon by Parliament, will apply the disengagement of the current oil companies to be owned by the National Company, and it will be directly affiliated with it without any financial compensation with its rights and obligations that were concerned with the Ministry of Oil, explaining that The companies intended to include the National Company, the Iraqi Drilling Company, the Basra Oil Company, the North Oil Company, the Maysan Oil Company, the Central Oil Company, Dhi Qar Oil Company, the National Oil Marketing Company SOMO, and the Iraqi Tanker Company.
For her part, a member of the Parliamentary Economy and Investment Committee, Nada Shaker, commented on the imminent adoption of the Iraqi National Oil Company law, noting that it "will provide thousands of job opportunities for Iraqi expertise."
Shaker told "Ultra Iraq", "Iraq is primarily an oil and agricultural country, but there are no real efforts to invest these potentials available in these two sectors and enhance their resources to supply the state with sufficient imports, pointing out that" unemployment rates in Iraq are increasing rapidly, and the state must exploit Such laws will join the work of the oil sector by pushing new blood from the accumulated experiences represented by graduates of the Petroleum Institute and the qualified engineering colleges.
The National Oil Company Law, which will soon be passed by Parliament, will implement the disengagement of existing oil companies to be owned by the National Company
And she continued, "Watching a positive and significant return for Iraq through this law and the companies that will be included in it, can only be achieved with a real political will that gives its council the opportunity to manage matters, contracts and investment deals, away from the ratios, embezzlement and commissions that have harmed the Iraqi people for years and left many negative results." on the energy sector in general.