Iraq cautions over BP, CNPC deal

By Ahmed Rasheed

BAGHDAD (Reuters) - The Iraqi parliament's oil and gas committee has expressed concern to British officials over what it called an "illegal" multibillion-dollar deal that BP Plc (BP.L) will sign with the Iraqi government on Tuesday, a lawmaker said.

Some lawmakers in parliament object to the contract awarded to BP and China's CNPC to develop the 17 billion-barrel Rumaila oilfield, Iraq's biggest, because they feel they have a right to authorise or reject such agreements.

The government disagrees, and believes cabinet approval is sufficient.

The committee's objections are indicative of the political risks facing oil firms and other investors as Iraq emerges from years of sectarian war and heads into an election in January.

Lawmakers say there is no guarantee that contracts signed by the current government of Prime Minister Nuri al-Maliki will be honoured by the government that succeeds it.

"We, in the oil and gas committee, are seeking to meet the British ambassador in Iraq and BP officials to discuss the illegality of the Rumaila oil deal and its detrimental effect on democracy in the country," Jabir Khalifa Jabir, secretary of the oil and gas committee, said on Sunday.

Jabir told Reuters BP was infringing Iraq's constitution and laws by moving forward with the deal.

"BP's willingness to sign the Rumaila contract encourages the oil ministry to violate the constitution," Jabir said.