Norway to help Iraq with oil industry
March 22, 2005

By Doug Mellgren-Associated Press:

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 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 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, but its industry has been hard hit by war, sabotage, and mismanagement under the regime of ousted President Saddam Hussein.

"Iraq presents its own special challenges," said Lunde.

He said Norway, with more than 30 years experience as an oil producer, is discussing needs with Iraq, and is ready to help when details are settled.

The talks were requested by Iraq, which is seeking help in such areas as training and technology, Lunde said.

Ministry spokesman Espen Gullikstad said Norway envisions a three-year, 23.5 million kroner (US$3.8 million, euro2.88 million) program.

Lunde said 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 developing countries often run into problems with accounting for the funds, sometimes because of corruption.

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 other countries, the World Bank and the United Nations are also likely to become involved in efforts to help rebuild the Iraqi oil industry.

Norway opposed the U.S.-led 2003 war in Iraq, but sent a contingent of about 150 military engineers to assist with general reconstruction for one year after the war ended. Those troops were withdrawn in June 2004, and the Nordic country is now represented by about 10 military
staff officers.

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