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Last Updated: Tuesday, 16 September, 2003, 17:03 GMT 18:03 UK
Iraq to attend Opec meeting
Oil refinery at Daura, near Baghdad
Restoring oil exports is vital to Iraq's future
Iraq has been invited to attend an Opec meeting for the first time since occupation by US-led forces, the oil producers' cartel said.

The invitation marks an important step in the country's rehabilitation as an oil producer.

It will also calm fears among some Opec members that an eventual sovereign Iraq government will exit the cartel, under US influence.

Iraq is a founder member of Opec, but it has not attended a meeting since the US-led invasion this spring, and it has not taken part in Opec's output agreements since 1991's Gulf War.

'Constructive policies'

New Iraqi Oil Minister Ibrahim Bahr al-Uloum, appointed by the Governing Council, will head an Iraqi delegation to Opec's 24 September conference in Vienna.

Opec is anxious to retain Iraq, which has the world's second largest oil reserves, within its fold.

But it is not expected that the country, which is struggling to reach pre-war production levels, will be reincorporated into the group's system of output quotas any time soon.

In a statement, Iraq's oil ministry said: "The removal of the Baath regime and its detrimental oil policies towards the oil industry in Iraq and elsewhere has opened the way for new, constructive, and more positive policies towards Opec and the international community.

"As a major producer and exporter of oil with huge potential for expansion, Iraq will certainly play an increasingly dominant role in international oil affairs, contributing, as it is sincerely envisaged, in the stabilisation of the present and future developments of the oil market".

Active member

Opec initially insisted it would only welcome a representative from an Iraq government recognised by the United Nations.

But most Opec members softened that stance after Arab League foreign ministers let the Governing Council take Iraq's vacant seat at talks last week in Cairo.

Some in Opec had suggested Mr Uloum attend next week's meeting merely as an observer.

But an Iraqi official told the Reuters news agency that the minister intended to represent Iraq as an active member of the group.

OPEC president Abdullah Al-Attiyah also defended Iraq's wish to attend the meeting.

"The organisation has to invite Iraq to the upcoming meeting in Vienna... I believe in Iraq's importance as an active member of the organisation," Mr Mr Al-Attiyah told reporters on Monday.

Opec is expected to leave production restraints unchanged for the fourth quarter to support prices near its target of $25 a barrel.


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