Iraq’s parliament approved the appointment of a new oil minister in a cabinet reshuffle delayed by months of political disputes and against the government’s inaction on promised reforms.
Jabar Ali al-Luaibi, a former head of the state-owned South Oil Company, Iraq’s biggest crude producer, takes over the oil post, while parliament also approved four other cabinet nominees, including for education, transport, water and housing.
The appointments are a boon to Prime Minister Haidar al-Abadi, who has struggled to overhaul his cabinet. He has chosen it as a first step in his bid to cut graft and dismantle a political system based on sectarian quotas and patronage networks.
However, no names were submitted to parliament for Iraq’s other influential and contested cabinet positions, including the foreign and finance ministries.
Mr Abadi tried to reshuffle his entire cabinet in March. But Iraq’s , loath to get rid of a system that has enriched them, was so divided over his proposed changes that they brawled and held sit-ins inside parliament.
Frustration at Mr Abadi’s inability to follow through on promised reforms triggered street protests in which demonstrators stormed Baghdad’s heavily fortified Green Zone and ransacked parliament earlier this year. The new appointments could help him push ahead with his reform plans.
“It was a good play. He needed to make some progress and taking little steps was the best way to do it,” said Renad Mansour, an Iraq analyst at the Carnegie Endowment think-tank. “Abadi realised that trying to do it all at once, as he did in March, was too much of a shock to the system.”
The oil ministry was a critical post to fill as Iraq grapples with an economic crisis caused by the slump in crude prices and the government’s decision to plough money into its military offensive against Isis.
surged over the past decade as foreign companies invested in the industry, and the country now pumps 4.6m barrels a day, making it the second largest Opec producer.
But since the slide in crude prices, the cash-strapped government has struggled to repay international companies, which operate Iraq’s large oilfields. As a result, Baghdad has asked foreign oil players to curb their investments, while company executives have sought to renegotiate their contracts.
Some companies have stopped investment in the sector altogether, industry officials say.
Mr Luaibi now faces the challenge of reviewing contracts and agreeing a new repayment arrangement with the companies, while also restructuring the state oil company and his ministry, analysts say.
“Mr Luaibi needs a supportive parliament and co-operative cabinet that would favour sound legal and constitutional arrangement over fragile political deals,” said Luay al-Khateeb, executive director at the Iraq Energy Institute, who has known Mr Luaibi for more than a decade. “The latter proved to be a failed policy for the past decade.”
Laila Khafaji, a politician in the Islamic Supreme Council of Iraq, an influential Shia party, said she hoped the oil minister’s appointment would ease tensions between Baghdad and oil-producing Basra province. Mr Luaibi hails from the southern region, which has been the scene of protests demanding government reforms.
“We thought it would be fair for the new person to be from Basra as most of the oil is produced in that region,” Ms Khafaji said.
But there are still major hurdles ahead for Mr Abadi and his new ministers.
The prime minister faces a cabinet dilemma following the recent resignation of the interior minister, which risks sparking a struggle over that powerful post. Parliament is also embroiled in a row over corruption with the defence minister, who was called before MPs for questioning on Monday.
The uncertainty around Iraq’s two top security posts comes at a sensitive time with Baghdad preparing to launch its biggest confrontation with Isis — the battle to retake Mosul, Iraq’s second-largest city.
Sajad Jiyad, an Iraqi researcher, also cautioned that ministerial appointments would only make a small dent in the fight against pervasive graft.
“Changing just the ministers is not enough,” he said. “There are under-secretaries and director generals that have been in their position for 10 years, and no minister has been able to unseat them.”