Opec member Kuwait is considering changes to the authority responsible for oil policy as lawmakers press for the dismissal of non-government members from the body, industry sources said.

The changes, aimed at lessening any conflict of interests in the body, will affect oil contracts but are unlikely to affect the energy policy of the world's fourth-largest oil exporter.

A long-running standoff between parliament and the government has led to major oil deals being scrapped or delayed.

Five deputies have submitted a draft law requesting a change in the formation of the 16-member Supreme Petroleum Council. The draft calls for replacing the nine non-government members on the top decision-making body with government officials, one of the five deputies said on Thursday.

"The oil sector is state-owned...decisions related to the oil wealth of the country should be political decisions so the government can take full responsibility," MP Hassan Jowhar said.

Parliamentary committee was discussing the bill, he said.

The SPC was formed in 1974 to oversee the country's oil interests. Five ministers are permanently on the board, including the oil and commerce ministers, in addition to the central bank governor and the prime minister. A new SPC must be formed by October, when the term of the current council expires.

Strong criticism in parliament over conflict of interests on the SPC has forced the government to consider the changes, a source close to state-run Kuwait Petroleum Corp said.

Changes that alleviate the perception of the conflict of interests may help to expedite future oil deals, he added.

Kuwait ditched a $17 billion deal with Dow Chemical in December after facing opposition in parliament. It also cancelled contracts this year awarded in a $15 billion tender to build a refinery after opposition by deputies.

The cabinet and the new SPC are expected to decide on the fate of the giant 615,000 barrels per day refinery.

Oil Minister Sheikh Ahmad Al-Abdullah Al-Sabah said he hoped the council would be announced soon, and would move ahead with decisions on new contracts.

One of the contracts pending its approval is a technical service agreement to help boost heavy oil production from the northern fields, he said.

Kuwait signed a preliminary deal with US firm Exxon Mobil Corp in 2007 to develop northern heavy oil fields and had planned to conclude a final agreement in 2008.

Scrapping the Dow and al-Zour fourth refinery deals triggered anger among some non-government SPC members and at least two have resigned from their posts in the council, two sources close to the SPC said.

"There is a general frustration among the members of the SPC and other officials in the oil sector because of delaying and cancelling of such vital projects," one oil source said.

The SPC was not expected to meet before October, he said.

Non-government industry players would still advise the SPC under the changes, but would not have a vote, another source said, adding that having more politicians on the SPC could increase delays, rather than prevent them. - Reuters