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The Oil and Gas Law Returns to the Forefront... Will Al-Sudani Be Able to Resolve the Disputes Over It?

Mary B

By Mary B,
in Iraq & Dinar Related News

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Mary B Mentor

Mary B

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Talk returns about the oil and gas bill that has been absent for two decades due to political differences, despite the fact that it represents the only solution to all the problems of the center and the region.

MP Ali Al-Mashkoor, a member of the Parliamentary Oil and Gas Committee, attributed the delay in approving the Oil and Gas Law to points of contention behind which the Kurdistan Region of Iraq stands.

It is noteworthy that the Oil and Gas Law has undergone 11 amendments and has never reached Parliament.

Al-Mashkoor said in a press statement, "The law has been in place since 2008 and was sent to the House of Representatives to regulate the financial and oil matters of the producing provinces," explaining that "this law cannot be passed except with political approvals from the blocs within Parliament."

He added, "The reason for the suspension of this law in the corridors of the House of Representatives is the failure to send its latest updates, as there are clear points of disagreement with the region," indicating that "the dialogues with the region resulted in reducing these articles from 9 to 7 points."

He explained that "dialogues are still ongoing between the federal government and the region in order to resolve these points," noting that "until now we have not reached solutions that can be accepted by both parties."

Yesterday, Wednesday, Prime Minister Mohammed Al-Sudani visited the Kurdistan Region of Iraq to discuss a number of important files, including the oil and gas law.

Iraq's oil and gas law, which has been awaiting legislation since 2005, stipulates that responsibility for managing the country's oil fields should be vested in a national oil company, overseen by a federal council specializing in this matter.

The Kurdistan Oil Law stipulates that the Ministry of Oil in the region or whoever it authorizes shall assume responsibility for organizing and supervising oil operations as well as all activities related to them, including marketing oil, as well as negotiating and concluding agreements and implementing all licenses, including oil contracts concluded by the regional government. The Iraqi government also has the right to participate in the management of fields discovered before 2005, but fields discovered after that are subject to the regional government.

On February 21, the Federal Supreme Court ruled that the federal government would be responsible for paying the salaries of Erbil government civil servants, with the amount paid at source in Baghdad deducted from the regional government’s share, and the KRG must submit monthly accounts detailing each salary paid. This is effectively a stricter reset of the original “budget payments for oil revenues” deal agreed between the KRG and the federal government in November 2014.

There are no government statistics on oil exported from the Kurdistan Region of Iraq, but the Iraqi Ministry of Oil published an analysis in May 2023, saying the regional government had committed “legal and procedural violations” in selling oil that caused significant losses.

The financial returns of the regional government constitute no more than 80 percent on average after deducting the production costs (the cost of producing a barrel of oil), while the financial returns of the first and second licensing rounds (held by Baghdad) constitute from 94.5 percent to 96.5 percent, and the cost of production is equivalent to (4) times the production costs in the licensing rounds of the federal Ministry of Oil, according to the Ministry of Oil.

Iraq exports an average of 3.3 million barrels of crude oil per day, and black gold constitutes more than 90 percent of the Iraqi treasury's resources.

In August 2023, the government formed a committee to draft the oil and gas law and present it to the government for voting and then passing it to the House of Representatives. The committee included the Minister of Oil, the Minister of Natural Resources in the Kurdistan Region of Iraq, the Director General of SOMO, and senior staff in the Federal Ministry of Oil, in addition to the producing governorates such as Basra, Dhi Qar, Maysan, and Kirkuk.

For years, the points of contention between Baghdad and Erbil have not been resolved, but Al-Sudani recently revealed that an agreement had been reached with Erbil on these points, in addition to including in his ministerial program the resolution of these items, most notably the enactment of the Oil and Gas Law and the implementation of Article 140 regarding the disputed areas.

In mid-February 2022, the Federal Court issued a decision declaring the oil and gas law in the Kurdistan Region of Iraq unconstitutional, and prevented it from exporting oil for its own benefit, with the export to be through Baghdad exclusively, based on a lawsuit filed by the Federal Ministry of Oil.

https://non14.net/public/171968

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Lorre Rookie

Lorre

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SO.....  I have been a member of this site since 2011... I pop back in only once or twice a year now. I jumped off the roller coaster many years ago. I just did a brief run-through of all of todays articles, and it all sounded exactly like it did back in 2011.  Especially the Rumor section... ei: back screens, NDA's etc....(God help us!)   This sounds at least promising. We know nothing can happen til they resolve this A-140.  If Trump does have any control at all, I assure you he won't be giving the Biden administration any credit or this, so January 20th would be the first available date something could happen. JMHO I pray this finally goes.  Im tired of it even being stuck in the back of my mind.  Its exhausting to even revisit.  Much love all!  AND PS.... Why does it show me as a newbie?  Thats strange!

Edited by Lorre
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tn vol Collaborator

tn vol

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2 hours ago, Dwaves said:

IF trump has any authority to RV the IQD... don't you think he would have done it in his first administration? What authority does a USA president have at the CBI? Just one man's opinion.

I was thinking he might could tell them that the US is going to stop sending millions of American dollars. Start using your own currency. ( just hoping )

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screwball Grand Master

screwball

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On 11/16/2024 at 12:04 PM, Woldopep said:

Parliament stays till 12/9. If it doesn’t happen then…….we wait till 2025

if it does happen, then we have a very happy new year !

if the census determines erbils % needs to be increased then it will and hopefully we see vote on or around 12/9 and then hoping for dec 25-1 Jan rate change!

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3n1 Mentor

3n1

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the oil belongs to the citizens per the constitution the current census will allow the provinces to receive their share imo all part of profit sharing to the people we read so many times over the years hoping this is the countdown to the windup ,,, Letsroll 

Edited by 3n1
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