Iraqi MP accuses Oil Ministry of unlawful deal

Shafaq News / Ali al-Lami, a member of the Parliamentary Oil and Gas Committee, accused the Ministry of Oil on Sunday of awarding the "Nahr Ben Omar" field in Basra to an "unreputable" company through an undisclosed contract signed in the UAE.

This move contradicted the Iraqi government's announcement over twenty days ago, with Deputy Prime Minister and Oil Minister Hayan Abdul Ghani confirming the contract's referral to an Iraqi company.

Al-Lami informed Shafaq News Agency that the officials at the Ministry of Oil "unfortunately" assigned the Nahr Ben Omar field, located in Basra, to an unreputable Iraqi company lacking similar gas extraction operations.

He criticized the Ministry for unlawfully assigning the field to this non-reputable company without an official tender announcement, preventing international companies from submitting bids for field investment opportunities. Al-Lami stated that the project was referred to the company with special approval and was signed in Dubai, UAE.

Furthermore, the Parliamentary Oil and Gas Committee will host Ministry officials to hold them accountable and investigate the reasons behind the project's referral without public announcement, Al-Lami asserted.

He emphasized that the company receiving the project did not meet the requirements, and the project, valued at over $1.6 billion, exceeded the company's executive capacity. Therefore, the project should be referred to capable international companies capable of executing the contract.

On Sunday, January 7th, Abdul Ghani presided over the signing ceremony for the investment, development, and gas processing contract of the Nahr Ben Omar field, with a capacity of 150 million standard cubic feet per day, expandable to another 150 million cubic feet per day in the second phase, depending on requirements and availability. This contract was between the South Gas Company and the Halafaya Gas Company Limited.

During the contract signing ceremony, Abdul Ghani highlighted the project's contribution to supporting the national economy by increasing gas production, investment, and processing associated with oil operations, reducing external imports, establishing a liquefied gas and condensates export port at Umm Qasr Port, stopping harmful emissions, and preserving the environment.