Shahristani: oil bill would require modifications

[PPG]

Baghdad (Reuters)-Hussain Shahristani told Iraqi Deputy Prime Minister that the amended draft oil law but Iraq will go ahead with the development of oil despite the ongoing debate on the controversial law is long overdue.

Investors awaited law of oil and gas to ensure a strong legal framework for prospecting. Law is also necessary for reconciliation between the political blocs while Iraq reconstruction after years of war.

But Iraq develops oil fields after already signed multi-billion-dollar service contracts with foreign firms under the old law.

The Government approved the draft hydrocarbon law in 2007 but encountered opposition from the semi-autonomous Kurdistan region in the first place.

Shahristani said in an interview with Reuters on Tuesday that a draft law approved by the Council of Ministers in 2007 not served as a law and it needs significant modifications.

Shahristani said responsible in particular for energy that Iraq has signed contracts with major global oil companies did not ask anyone there was oil and gas Act.

Work began in 2005 under a new Constitution. And under Arab majority facing differences and the Kurdish minority on revenue sharing and control over certain fields in the Kurdish region.

Bill to determine who controls Iraq's oil reserves and create a new State oil company to oversee the sector nationwide as well as establishing a strong legal framework to attract foreign investment.

Shahristani said he saw no need to review OPEC to consider production formal meeting scheduled in June.

He is expected to average world oil prices remain above $ 100 a barrel during the remainder of the year.

The price of Brent crude contracts July $ 2.47 112.57 dollars per barrel Tuesday then dropped slightly to about $ 112.25 by 1324 GMT. US crude contract rose tint $ 2.12 to $ about 99.82.

Shahristani said the South Korean firm kogas agreed to sign a contract to develop a keen for gas agreement is expected to be completed next month. Keen reserves estimates most Iraqi gas field some 5.6 trillion cubic feet.

Shahristani said that Iraq had informed kogas agreed to come to Baghdad and keen to sign a contract. He said Iraq told them that they can choose a partner to develop the field.

He asked Iraq earlier this month that they can develop kogas field; Reed alone after the withdrawal of kazmunaigas.

Shahristani said that Royal Dutch Shell, Mitsubishi also agreed on all technical and contractual agreement for gas and oil Ministry is expected to provide a final draft of the agreement to the Cabinet this month.

Iraq has been negotiating an agreement worth 12 billion dollars with shell will entitle the country benefit from more than 700 million cubic feet of associated gas of oil in three oil fields could be used to generate electricity.

Shahristani said that Iraq select a future production at 12 million barrels per day based on predicted that global demand will increase by 20 million bpd in the next 20 years and that his country will have a key role in the new demand.

Iraq currently produces 2.75 million barrels per day includes 130,000 barrels a day from fields located in the northern Kurdish region.

Shahristani said that Iraq would not discuss his future in OPEC production before exceeding four million barrels per day production.

And Iraq, a founding member of OPEC but is excluded from the obligation to share official for years because of the sanctions and war. And access to targeted production capacity amounting to 12 million bpd to make Iraq a competitor to Saudi Arabia, OPEC's largest exporter.

Iraq expects to reach this level in nearly seven years, but most analysts say that around eight million barrels per day to more realistic.

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[HYDRANT]

GREAT FIND THIS IS WHAT WE OUR LOOKING FOR HCL TO BE DONE----THIA IS THE STEP TOWARDS THE RVVVVVVVVVVVVVVVVVVVVVVVVV

[Darin]

12 million barrels a day......

Let's do the math at $100 per barrel.

That equals $1.2 Billion a day in exportation

That equals $438 billion a year in crude alone

Crazy! Granted we have to subtract out costs... But who knows what crude may be going for at that point, huh?