Iraq expects new energy law, closer EU ties soon

Eric Watkins
Senior Correspondent

LOS ANGELES, Apr. 17 -- Iraqi Prime Minister Nuri al-Maliki told European parliamentarians that his country's Oil and Gas Draft Law will be passed soon to attract international energy investment.

Al-Maliki told the European parliament's foreign affairs committee that his government is nearing a final agreement on the law, which will pave the way for signing strategic partnership agreements and developing investments.

Europe argues that the law's ratification is essential for development of international investment in Iraq's energy industry.

Meanwhile, the European Commission said Iraq has offered to increase its supply of natural gas to the European market over the next 3 years.

The offer was made during talks between Iraqi Oil Minister Hussein al-Shahristani and EU Energy Commissioner Andris Piebalgs.

The EC said Iraqi officials are ready to sign a draft energy memorandum of understanding, which would open the way to closer EU-Iraqi energy ties.

The EC said Iraq made "a political gesture of goodwill" by promising to export at least 5 billion cu m of gas to the European market by 2011.

It said Iraq also was committed to increasing its oil production to 3 million b/d by yearend and that it aimed for 4.5 million b/d by 2012.

"This should be a favorable contribution toward decreasing oil prices," the commission reported in a statement. "Iraq confirms it is exploring new areas for production."

EC Pres. Jose Manuel Barroso said negotiations on a complete energy pact with Iraq "are going on very well" and suggested that a final agreement could be reached by May.

Contact Eric Watkins at [email protected].