INTERVIEW-Iraqi opposition says oil deals would be reviewed
Reuters, 10.17.02, 6:40 AM ET


By Raj Rajendran

LONDON, Oct 17 (Reuters) - Iraq's main opposition group says a post-Saddam government would review existing oilfield development deals with French and Russian companies and could favour U.S. firms instead.

Sharif Ali Bin Al Hussein, spokesman for the main Iraqi opposition group the Iraqi National Congress (INC), told Reuters in an interview that his group would open the oil sector to all companies, including the U.S. majors.

"We would have to review all contracts which have been signed by this regime to make sure it is in the interest of the Iraqi people and not just for Saddam Hussein," Hussein said.

"We would review the Russian and French contracts in particular although it is not an automatic revocation. You have to bear in mind a lot of the deals were done by a dictator."

Hussein's comments will provide fuel for those who allege that one of Washington's prime objectives in seeking to oust the Iraqi president is get its hands on Iraqioil. The U.S. denies that charge. Russian oil company Lukoil has said it is pressing Moscow to seek guarantees from Washington that it will safeguard Russian interests in Iraq after Saddam but there is no evidence that France is making a similar push.

Russia and France are opposed to a U.S. proposal at the United Nations for a new resolution on Iraq that would call for swift military action if Baghdad violates Council demands on weapons inspections.

Hussein said oil agreements, frozen until Gulf war United Nations sanctions are lifted, would take into account the new diplomatic and geopolitical realities facing a government in Baghdad should President Saddam Hussein be deposed.

He said the INC had held no official talks with any U.S. oil companies.

Nor has the INC officially met TotalFinaElf or Lukoil, the French and Russian companies lined up by Baghdad to develop Iraqioil reserves.

Although TotalFinaElf has no contract, it has been earmarked by Saddam's government to develop the Majnoon and Bin Umar fields with reserves totalling 26 billion barrels. Lukoil has signed a contract for the 15 billion-barrel West Qurna field.



NEW OIL POLICY

Iraq ranks second only to Saudi Arabia in oil reserves, sitting on some 220 billion barrels, but now pumps only 2.3 million barrels a day, exporting most under the U.N.'s oil-for-food programme.

It has plans to lift output capacity to six million barrels a day which experts say is a feasible target over a period of years once foreign investment starts flowing.

Hussein said the INC would initiate an oil policy that would focus on long term development and change the mindset of Iraqi relations with foreign companies.

"Iraq lacks a long term rational, pragmatic oil policy. We would be looking for a dynamic programme over the next 10 years. oil company relations had been confrontational," he said.

"We are fully aware that oil companies have gone elsewhere to develop, the new policy would be to give inducements for them to come to Iraq to develop." "We want Iraq to take its proper place in the world...to be a major player in the world oil industry," he said.

Hussein said the new regime could set up one state-oil company similar to other Gulf producing countries or have several production companies as in the case of Russia.

"It's too early to say if that one company formula is the right one or have several oil companies," he said.