By Ahmed Mousa Jiyad. This article was first published by Middle East Economic Survey (MEES), and is reproduced here with permission. It is a summary of Mr Jiyad’s presentation to the Politics and Economics of European Energy Security conference organized by the Institute for Energy, Joint Research Centre of the European Commission, in Amsterdam on 18‐19 November.
According to the recently announced draft of the EU Energy Strategy 2020, “EU will sign energy framework agreements with key suppliers … to diversify supply sources and routes.” Iraq stands among the key potential suppliers of oil and gas for Europe. However, there is good deal of uncertainty with regard to the magnitude and the timeframe of possible oil and gas supplies from the country.
Moreover, it is vital to activate the existing cooperation frameworks, and if need be conclude new agreements with the EU to help Iraq develop its upstream petroleum. For Iraq the priorities for such cooperation are: putting an end to associated gas flaring; formulating and implementing sound national energy policy; assisting in selecting the optimum gas export pipeline option; and institutional and human capacity development in the fields of energy. And since energy security is of strategic importance for the EU, Iraq, as from 2010, will fall under and benefit from the newly extended Instrument for Cooperation with Industrialized Countries (ICI+).
A speedy ratification by the Iraqi Parliament of the MOU/SPE and PCA should have priority, since both instruments fall under the prerogatives of the parliament. The EU, on its part, should be more proactive and take the initiative to help Iraq to become a reliable contributor in securing energy supplies for Europe by moving from declared intentions to target‐oriented actions.
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Mr Jiyad is an independent development consultant and scholar and Associate with the Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou‐[email protected]).