By Abbas al-Baghdadi
Azzaman, November 23, 2014
The Iraqi parliament has on its agenda the approval of a new draft oil law that will hopefully put in place long-term solutions to differences over distribution of oil wealth particularly with the Kurdish autonomous region.
Officially called “Oil and Gas Law,” the draft legislation has been shelved for years due to difference on its text.
However, the absence of a law to regulate the development of the country’s massive oil riches and the distribution of royalties has soured relations between the central government in Baghdad and the Kurdish region.
Mohsen al-Saadoun, deputy head of the legal commission at the parliament, said Iraqi legislators are determined to debate the draft law in their next session scheduled for early 2015.
The draft legislation was put before the parliament several times in the past few years but when put to vote it failed to win the two-thirds majority needed to turn it into law.
But Saadoun said conditions have changed with a new government in Baghdad and all factions, including Iraqi Kurds, willing to work together to pass the draft law.
“Time is suitable to pass the Oil and Gas Law as it will put an end to problems with the (Kurdish) region and bring order to ties between provinces and the central government,” Saadoun said. “The parliament’s top priority during the forthcoming session is to pass important legislation at the forefront the Oil and Gas law.”
The central government and the autonomous Kurdish region reached an interim agreement more than two weeks ago over oil exports and budget payments.
The differences with the Kurds over oil exports and distribution of oil revenues have been the root of the standoff between Baghdad and Arbil, the seat of the regional Kurdish government.
Under the temporary agreement, Baghdad has already paid $500 million to the Kurdish Regional Government. In return the Kurds have agreed to allow the government sell 150,000 barrels per day of crude oil produced within their region.
Saadoun said the agreement was constitutional and described it as “a sign of goodwill between to solve earlier standoffs.”
