Iraqi oil bids under fire

BAGHDAD, June 17 (UPI) -- The Iraqi oil minister faced Parliament over the need to invite foreign companies to take part in the energy sector on the eve of the first post-war bids.

Iraq is set to open the first round of bidding for eight service contracts in the oil and gas sector at the end of June. Lawmakers had summoned Iraqi Oil Minister Hussain al-Shahristani and national oil company directors, however, over the need to invite foreign companies into the country following years of federal investments.

Fayad al-Nema, the director of the state-owned South Oil Co., complained the foreign deals would put the national economy "in chains" and "shackle" independence for the next two decades, the Emirati newspaper The National reports.

Nema had complained that Iraq has spent $8 billion of its own money on rebuilding the oil field included for the first bidding round, saying it was irrational to therefore have foreign companies reap the benefits.

Shahristani has faced tough criticism recently over perceived neglect during his term as oil minister.

Iraq depends on oil revenue for 90 percent of its federal budget and in February made drastic cuts and imposed a hiring freeze based on faltering oil-based income.