Maliki defends Iraqi oil contracts

BAGHDAD, Nov. 11 (UPI) -- The next government in Iraq will not have the authority to cancel oil contracts signed by the current administration, said Iraqi Prime Minister Nouri al-Maliki.

Iraq moved ahead with contracts with BP and the Chinese National Oil Corp. for the Rumaila oil field recently. A series of deals was also initiated for the first phase of the West Qurna field in the south.

Maliki said at a news conference in Baghdad that the government that comes to power following January parliamentary elections must honor the contracts from his administration, the Voices of Iraq news agency reports.

"The oil contracts signed by this government with foreign companies to increase the oil production are constitutional and the next government has no right to cancel them," he said.

His comments come as lawmakers grilled Iraqi Oil Minister Hussain al-Shahristani for budgetary and political decisions in the oil sector during his tenure. Some lawmakers also question whether the recent oil deals are legal or not.

A national hydrocarbon law is stalled currently in Parliament. Recent contracts handed out to oil majors are limited to service deals to get around the legislative obstacle.

Iraq held its first post-invasion auction for access to its vast natural resources. A second auction is scheduled for December.