By Ahmed Mousa Jiyad.
Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
Proposed INOC Law Could Disintegrate Petroleum Sector and Damage the Iraqi Economy
At short notice I was asked to give opinion on the text of the proposed Iraqi National Oil Company (INOC) Law, which is expected to be discussed by a few people in a “consultative meeting” at the Ministry of Oil today Wednesday 16 March 2016.
I examined thoroughly the above mentioned text and provided my initial assessment to all senior officials at the Ministry of Oil; the Parliamentary Committees for Energy & Oil and Finance and some oil professionals who were invited to attend the “consultative meeting”. My remarks were posted to the above mentioned individuals and officials at 03.00 AM (Norway time) this morning 16 March 2016.
Due to the urgency of the matter I posted my brief assessment with detailed remarks written on the Pdf copy of the said INOC Law. I will publish my full assessment of INOC Law shortly.
Briefly, in my humble view there are many extremely serious problems, flaws and inconsistencies in the laws, which could generate many negative consequences that could disintegrate the petroleum and upstream sector and on Iraq economy.
The proposed Law mixes and confuses authorities by giving an upstream petroleum entity, INOC, a fiscal authority of macroeconomics nature, allocation of revenues!
It ignores the necessary and constitutional separation of the three branches of authority and their jurisdictions and prerogatives.
By attaching INOC to the Parliament, the Law violates the principle of Natural justice: the conflict of interest.