Iraq lawmakers promise tough ride on oil contracts

By Ahmed Rasheed

BAGHDAD, July 1 (Reuters) - The Iraqi parliament's oil and gas committee must have the right to scrutinise any long-term oil contracts signed with foreign firms or it will try to block the deals, the committee's head said on Tuesday.

The comments by Ali Hussain Balou came a day after the Oil Ministry opened Iraq's giant oilfields to bids for long-term contracts by foreigners for the first time in decades.

Balou also demanded an explanation from Oil Minister Hussain al-Shahristani on plans to offer a series of short-term technical support contracts worth $500 million each to a handful of Western oil majors without competitive bidding.

"The parliamentary oil and gas committee ... should have access to every detail on all the contracts, otherwise we will block them in parliament," Balou, a Kurd, told Reuters.

The deputy head of the committee, Abdul-Hadi al-Hasani, a Shi'ite, added that parliament should have the right to approve contracts that were either long-term or for major fields.

The comments suggest the government might face stiff opposition in parliament to allow international firms to help raise output at six of its key producing oilfields.

The move should mark the return of the oil majors, whose cash and expertise Iraq needs to restore its oil infrastructure that has been hard hit by sanctions and war.

Iraq's proven reserves, at 115 billion barrels, are the world's largest after Saudi Arabia and Iran.