Iraqi lawmakers irked over BP oil contract

Published: Nov. 3, 2009 at 11:23 AM

LONDON, Nov. 3 (UPI) -- British oil major BP took control of the Rumaila oil field in Iraq to the ire of Iraqi lawmakers who complain the deal is in violation of national law.

In one of the biggest oil developments since the U.S.-led invasion in 2003, BP and its partners at China National Petroleum Corp. expect to boost Iraqi oil production to 7 million barrels per day within six years.

The contract leaves the Rumaila field in the hands of the Iraqi government with the oil companies earning $2 per barrel of oil extracted from the southern field.

Iraqi lawmakers have murmured their concerns that the role of the British major is reminiscent of the colonial experience. In addition, several lawmakers could be upset as they try to get a portion of the national oil wealth, the Times of London reports.

Officially, lawmakers say the deal is illegal because the constitution gives Parliament the last word on oil deals.

In a letter to Christopher Prentice, the British ambassador in Baghdad, Iraqi lawmakers complain the Rumaila contract undermines national sovereignty by dealing directly with the Oil Ministry, not Parliament.

"BP's willingness to sign the contract encourages the Oil Ministry to violate the constitution," said Jabir Khalifa Jabir, secretary of the Oil and Gas Committee in Parliament.

© 2009 United Press International, Inc. All Rights Reserved.
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