HC Deb 12 June 1972 vol 838 cc196-7W
Mr. Skeet

asked the Secretary of State for Foreign and Commonwealth Affairs if he will outline the issues involved in the dispute between the Iraq Petroleum Company Limited and the Iraq Government which led to the nationalisation of the Kirkak oilfields, pipelines and installations.

Mr. Godber

Her Majesty's Government are following closely developments in this dispute, which involves many complex issues. The dispute is, however, one between the Iraq Government and the Iraq Petroleum Company, and it would not therefore be helpful for me to go into details about the outstanding issues at this stage.

Mr. Skeet

asked the Secretary of State for Foreign and Commonwealth Affairs whether the Iraq Petroleum Company refinery in Lebanon is likely to be affected by the nationalisation proposals.

Mr. Godber

The refinery in the Lebanon is not covered by the nationalisation decrees recently made in Iraq and Syria.

Mr. Skeet

asked the Secretary of State for Foreign and Commonwealth Affairs what steps he will take to ensure that nationalisation of petroleum interests is illegal under international law unless first the Governments of the nationalising country have paid adequate compensation for assets already sequestrated.

Mr. Godber

To be regarded as legitimate in international law an act of nationalisation must not be arbitrary or discriminatory in its effects.

It must be for a public purpose related to the internal needs of the taking State; and it must be followed by the payment of prompt, adequate and effective compensation.

Mr. Skeet

asked the Secretary of State for Foreign and Commonwealth Affairs if he will give an estimate of the value of the assets of the Iraq Petroleum Company Limited which were recently request rated in Iraq and in addition the value of assets nationalised by the Iraq Government in recent years through the forfeiture of a major part of the company's concessions.

Mr. Godber

I am unable to give a precise estimate of the net book value of the Iraq Petroleum Company's assets in Iraq, which are considerable. It must, of course, be recognised that the value of the company as a going concern is very much higher. The book value of the company's assets expropriated in 1961 was relatively small but its appropriated rights to explore for, and produce, oil were very valuable.

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