A new hydrocarbons law has been in the making for years but has
faced opposition over who controls the world’s fourth largest oil
reserves, some in areas disputed by ethnic Arabs and Kurds and some in
Iraq’s semi-autonomous north. “Parliament’s energy committee has
proposed a new draft and if government further delays its submitting of
the oil and gas law then we will go with new one,” Iraq Parliament
speaker Osama Al-Nujaifi said. The oil law has been one of many
contentious issues facing Iraq’s new multi-sectarian government since it
was formed in late December following more than nine months of
wrangling and an inconclusive election. Investors have been waiting
for the law’s approval to guarantee a more solid legal framework for
exploration. The law is also seen as pivotal to reconciling Iraq’s
political factions as the OPEC country rebuilds after years of war. Even
without the law, Iraq is already developing oil-fields, signing
billions of dollars in service contracts with international companies
under legislation dating back to before 2003 when a US invasion ousted
Saddam Hussein. The draft oil law was approved by the Cabinet in
2007 but faced opposition in parliament which sent it back to the
government for amendments. Last month, Iraq made some changes to the
law, which are being reviewed by the cabinet’s energy committee. “It’s
clear parliament is trying to pressure the government to unchain the
long-delayed law, but this will not solve the issue, It’s just creating
more chaos,” Baghdad-based oil analyst Hamza Al-Jawahiri said. “Parliament should understand the only way out of this issue is through a political deal with the Kurds,” he said.
