Iraq Sees No Need For National Oil Company

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Iraq, the lone OPEC member not beholden to the cartel's production quota system, does not need a new Iraqi National Oil Company to manage the country's energy sector, Oil Minister Abdul-Kareem Luaibi said on Sunday while addressing the Iraqi parliament's energy and oil committee.

State-run oil companies are typically the largest producers in many countries throughout the non-Western world, including OPEC nations and South American countries such as Brazil and Colombia. Iraq approved a new state-run oil enterprise in 2009, but the legislation has stalled.

The original Iraqi National Oil Company was formed in the 1960s and then merged into the country's oil ministry in 1987, according to Reuters. Luaibi believes having two organization managing Iraq's oil business would lead to confusion and hamper the country's aspiration of significantly boosting production over the next decade.

Critic's within Iraq's cabinet contend that the country needs a national oil company to enhance development and believe that a national oil company can function along side the country's oil ministry, which would be left to set energy policy for Iraq.