October 14th, 2011

Oil & Gas Law



It is obvious that the primary aim of the draft oil and gas law (OGL) prepared by Adnan Janabi et al, is to negate the role of the Federal Government in oil and gas affairs. It is difficult to imagine that the people behind this draft OGL do think that it is in the national interest to make the Regions stronger, and the Center weaker, than they are now. If they honestly do, I beg to differ and be more frank in saying that what they have done was a good exercise in absurdity and futility.
Now going back to the Constitution and subsequent Laws, I would like to say:
1- I agree with the interpretation that “present fields” mean all discovered fields, including the not yet producing ones.
2- Article 112-second was formulated in absolute terms, thus covering all fields, present and future ones.
3- Accordingly, policy for all oil affairs, should be in the hands of the ministry of oil, while all operations covering “present fields” should be assigned to INOC.
4- New or potential fields should be managed differetly, in a way acceptable to relevant entities.
5- Representation of Regions and Governorates can best be achieved through effective and professional management councils, representing all producing entities, in proportion to reserves or production potential in each Region or Governate.
If such effective and professional councils can be established, the need for the federal oil and gas council (FOGC) could be eliminated.

The Forum