Iraq is the FIRST MAJOR Middle Eastern oil and gas producer to join the EITI processIraq Commits to Transparency in Oil & Gas Sector
Iraq is the first major Middle Eastern oil and gas producer to join the EITI process. Applying transparency at all stages of the oil and gas business and value chain, from production, processing, and exports, is the most significant signal the Govt. of Iraq could send its people and the outside world.
February 4, 2010
Iraq’s government has expressed a firm commitment to implement the Extractive Industries Transparency Initiative, becoming the first major Middle Eastern oil and gas producer to join the EITI process, and sending a clear signal of its political will to fight corruption, improve good governance, and promote transparency in the oil and gas sector.
Iraq is the first major Middle Eastern oil and gas producer to join the EITI process. Applying transparency at all stages of the oil and gas business and value chain, from production, processing, and exports, is the most significant signal the Govt. of Iraq could send its people and the outside world.
February 4, 2010
Iraq’s government has expressed a firm commitment to implement the Extractive Industries Transparency Initiative, becoming the first major Middle Eastern oil and gas producer to join the EITI process, and sending a clear signal of its political will to fight corruption, improve good governance, and promote transparency in the oil and gas sector.
Prime Minister Nouri Al-Maliki at the IEITI conference on January 10, 2010.
The launch event of the Iraq EITI process (IEITI) was held in Baghdad in January, organized with the support of the World Bank’s Oil, Gas and Mining Policy Division (COCPO) and other stakeholders. At the event, Prime Minister Nuri Kamal Al-Maliki spoke of the need to tackle corruption and promote a culture of transparency.
“Today, we announce that Iraq is joining the Transparency Initiative which is dealing with oil and gas, the most important resources of Iraq,” Al-Maliki said in his remarks. “Here, when we talk about how to cure ourselves from the phenomenon of corruption, we have to talk about transparency. Transparency is a culture; it can’t be achieved unless there is a culture in society which condemns the culture of crime, betrayal and the extension of the (one’s) hand to public money.”
A section of the audience at the IEITI conference held on January 10, 2010The event, attended by some 300 high-level representatives from the government, diplomatic corps, industry, Iraqi civil society, the EITI International Secretariat, national and international oil companies, NGOs and multilateral institutions, consolidated Iraqi's efforts to becoming a full-fledged EITI candidate-country. This implies that Iraq will hitherto independently audit, publish, and monitor -through civil society engagement in the process- all annual revenues from extractive industries, especially hydrocarbons. Iraq thus joins 33 countries already doing so.
A critical sector
Iraq’s oil and gas sector contributes to about 65% of its GDP, over 90% of public revenues, and most of its foreign exchange earnings. It is seen as central to Iraq’s economic and fiscal position, critical to the Iraqi economy and the ongoing reconstruction effort of the country, particularly regarding the development of hydrocarbons and power infrastructure.
“Applying transparency at all stages of the oil and gas business and value chain, from production, processing, and exports, is the most significant signal the Government of Iraq could send to its people and the outside world,” said the World Bank Country Director for Iraq, Hedi Larbi. “This underscores unequivocal adherence to the principles of good governance, accountability and transparency in the management of the oil wealth to support the national economy and social development that benefits the people of Iraq.”
A critical sector
Iraq’s oil and gas sector contributes to about 65% of its GDP, over 90% of public revenues, and most of its foreign exchange earnings. It is seen as central to Iraq’s economic and fiscal position, critical to the Iraqi economy and the ongoing reconstruction effort of the country, particularly regarding the development of hydrocarbons and power infrastructure.
“Applying transparency at all stages of the oil and gas business and value chain, from production, processing, and exports, is the most significant signal the Government of Iraq could send to its people and the outside world,” said the World Bank Country Director for Iraq, Hedi Larbi. “This underscores unequivocal adherence to the principles of good governance, accountability and transparency in the management of the oil wealth to support the national economy and social development that benefits the people of Iraq.”
Oil Minister Hussain Al-Sharistani during the press conference, flanked by World Bank Country Director Hedi Larbi (left) and by Inspector General Alaa Mohieddine and Jonas Moberg from the Oslo EITI International Secretariat (right)“The World Bank is very committed to supporting this process in the weeks and months ahead, with technical assistance and financial resources, so that Iraq can continue to make important progress on good governance and transparency along the entire extractive industries’ value chain,” said Mourad Belguedj, COCPO’s representative who led the effort in the preparation of this event, together with the Iraq-EITI National Secretariat in Baghdad and EITI International Secretariat in Oslo.
“We want to join this institution (EITI) to reform the globally damaged reputation of Iraq and the Iraqi government as a country full of corruption,” Oil Ministry Inspector General and National EITI Coordinator Alaa Mohieddine told journalists, as reported by Reuters.
“Hit with an iron fist”
Iraqis complain bitterly about government corruption which they blame for the poor state of electricity, water, and other basic services. Mohieddine said the government wanted to crack down on smuggling operations by well-organised gangs and the theft of Iraqi crude. "We have decided,” he said, “to hit with an iron fist anyone caught smuggling Iraqi oil.”
The event was well timed as a follow-up to the successful Second Licensing Round for oil and gas exploration in Iraq, which clearly stressed the increasing confidence of the international business community in Iraq’s capacity to leap substantially forward its oil and gas production to meet its financial needs.
The World Bank, through its Oil, Gas and Mining Policy Division, will continue to provide support to the Oil Ministry in the implementation of the EITI principles, but there is also a clear need to build civil society capacity to accompany this process. COCPO supports EITI implementation globally and at country level, and administers the EITI multi-donor trust fund (MDTF) to which a number of donors have contributed for that purpose.
Contributed by Mauricio Ríos, COCPO
Last updated: 2010-02-04
“We want to join this institution (EITI) to reform the globally damaged reputation of Iraq and the Iraqi government as a country full of corruption,” Oil Ministry Inspector General and National EITI Coordinator Alaa Mohieddine told journalists, as reported by Reuters.
“Hit with an iron fist”
Iraqis complain bitterly about government corruption which they blame for the poor state of electricity, water, and other basic services. Mohieddine said the government wanted to crack down on smuggling operations by well-organised gangs and the theft of Iraqi crude. "We have decided,” he said, “to hit with an iron fist anyone caught smuggling Iraqi oil.”
The event was well timed as a follow-up to the successful Second Licensing Round for oil and gas exploration in Iraq, which clearly stressed the increasing confidence of the international business community in Iraq’s capacity to leap substantially forward its oil and gas production to meet its financial needs.
The World Bank, through its Oil, Gas and Mining Policy Division, will continue to provide support to the Oil Ministry in the implementation of the EITI principles, but there is also a clear need to build civil society capacity to accompany this process. COCPO supports EITI implementation globally and at country level, and administers the EITI multi-donor trust fund (MDTF) to which a number of donors have contributed for that purpose.
Contributed by Mauricio Ríos, COCPO
Last updated: 2010-02-04
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