Iraqi oil minster faces lawmakers

BAGHDAD, June 23 (UPI) -- The oil minister in Iraq faced tough questions before lawmakers Tuesday over the first round of oil field auctions since the U.S.-led invasion in 2003.

Iraqi Oil Minister Hussain al-Shahristani answered questions from members of Parliament who are concerned pending auctions are not structured with Iraq's best interests in mind, The Times of London reports.

"The oil minister must convince us why the government should have spent $8 billion to develop oil fields, but then offers them to foreign firms like pieces of cake," said Jabir Khalifa Jabir, secretary of the Oil and Gas Committee in the Iraqi Parliament.

Shahristani announces the winners of the auction next week in a bidding round that includes 32 foreign oil companies, including supermajors BP and Royal Dutch Shell.

The winner will develop six oil fields and two gas fields holding reserves representing nearly 40 percent of Iraq's total potential.

Fayad al-Nema, the director of the state-run South Oil Co., complained in a memo that some of the terms of the pending 20-year service contracts were identical to the work conducted currently by SOC.

Nema had complained earlier the foreign deals would put the national economy in "chains" and "shackle" national independence for decades.