HOW MINOIL DEVELOPED THE FUEL IMPORT REGULATIONS

C O N F I D E N T I A L BAGHDAD 003988

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/23/2016
TAGS: ECIN ECON ENRG PGOV IZ
SUBJECT: HOW MINOIL DEVELOPED THE FUEL IMPORT REGULATIONS

REF: BAGHDAD 3913

Classified By: Economic Minister Counselor Daniel Weygandt for reasons
1.4 (b) and (d).


1. (C) Conversations with a key Ministry of Oil (MinOil)
official indicate that there was a truncated process with no
outside consultations during the drafting of the Fuel Import
Liberalization Law Regulations published by the MinOil on
October 12 (reftel). Longtime MinOil official and current
Director General of Finance Radhwan al Saadi (strictly
protect) told Emboff that Minister of Oil al Shahristani gave
Deputy Minister Motassam Akram Hassan, a Kurd who joined
MinOil in 2003, responsibility for drafting the regulations.
Motassam assigned the task to an underling, Zuhair Shakir, a
past director of the Drilling Company and of the Product
Distribution Company. Zuhair held one internal meeting to
discuss the regulations. Al Saadi described the meeting as a
brainstorming session in which ideas were written down and
labled regulations, rather than a formal drafting and review
process. The MinOil's legal division was not consulted, nor
did the Ministry follow the standard practice of having an
outside judicial group review the regulations. Following
this one meeting led by Zuhair, the Minister of Oil
officially distributed the regulations in the Iraqi
newspapers on October 12.


2. (C) Note and Comment: The Ministry of Oil is responsible
for issuing the regulations for the Fuel Import
Liberalization Law (FILL) passed by the Council of
Representatives in early September 2006. These regulations
can be easily amended by the Minister of Oil. Post is
collecting comments on the existing regulations and models of
good regulations from other countries. We will bring these
suggestions to the Minister of Oil upon his return to Iraq in
mid-November. Deputy Prime Minister Barham Salih has
suggested holding a conference for potential investors in
fuel imports when the Minister of Oil returns. If this
conference occurs, we will encourage investors to discuss
aspects of useful regulations with Minister al Shahristani.
Thus far, Minister al Shahristani has not been enthusiastic
about this conference. End Note and Comment.
KHALILZAD