Norway to help Iraq with oil industry (22/03/05)

Norway, a major oil exporter, is prepared to help Iraq build up its oil industry by sharing experience, training and technology, a deputy minister said on Tuesday. "There is real interest in doing this and getting it going this year," Norwegian Deputy Minister of International Development Leiv Lunde told The Associated Press.

Norway is ready to give Iraq oil aid

Norway is the world's third-largest oil exporter, after Saudi Arabia and Russia, and has a capacity of 3.2 million barrels of oil plus natural gas from its offshore fields. Iraq is also a potentially major oil supplier. "Iraq presents its own special challenges," said Lunde.

He added that Norway, with more than 30 years experience as an oil producer, is discussing its needs with Iraq and is ready to help when details are settled. The talks were requested by Iraq, which is seeking help in areas such as training and technology, Lunde said.

Ministry spokesman Espen Gullikstad said that Norway envisions a three-year, 23.5 million kroner ($3.8 million, €2.88 million) program. Lunde said that Norwegian aid could include training and education for Iraqi oil officials, setting up regulations for oil field operations and accounting for the income.

"Openness in accounting for the money coming in and going out from the oil industry is very important," he said. Lunde said that developing countries often run into problems with accounting for the funds. Lunde said the Norwegian oil and finance ministries, as well as training institutions and possibly private companies, will also be involved in the project.

"But this would be a state to state agreement, and not a door opener for Norwegian companies," he said. Lunde said that other countries, the World Bank and the United Nations are also likely to become involved in efforts to help the Iraqi oil industry.

Source: Businessweek