Iraq parliament warns government over delayed oil law

[zaborniake]

BAGHDAD, July 31 (Reuters) – Iraq’s parliament on Sunday warned the government it would force through a new draft of a much-delayed oil law if the cabinet further hold up the original legislation that investors see as a key guarantee of stability.

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 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 told reporters.

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 U.S. 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 told Reuters.

“Parliament should understand the only way out of this issue is through a political deal with the Kurds,” he said.

LINK

[Richardk]

Great post, thanks Zaborniake. Looks like parliament has had enough with the HCL delays. They want this so the people of Iraq can get the money they need. Again thanks Zab, very good news.

[acceb75]

HMMMMMMMMMM this is totally contradictory to what the call squad said (thet the HCL law had to be completed priour to Iraq entering into any new oil contracts) now I am not sure what to think.

[idplzr]

Too much info coming out in mass numbers regarding capt 7, hcl, and currency. I know Adam and others say, "nothing significant happens during Ramadan", but I would not be surprised to see one if not all get acomplished during and shock the world...Just a thought...

[MrFnHappy]

BAGHDAD, July 31 (Reuters) – Iraq’s parliament on Sunday warned the government it would force through a new draft of a much-delayed oil law if the cabinet further hold up the original legislation that investors see as a key guarantee of stability.

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 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 told reporters.

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 U.S. 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 told Reuters.

“Parliament should understand the only way out of this issue is through a political deal with the Kurds,” he said.

LINK

This is, and has been the holdup. Art 140 must be settled before the Kurds will accept any oil law. The Kurds were promised this would be settled already....their "leverage" to get what they want out of Art 140 is the holdup of the HCL.

Edited July 31, 2011 by MrFnHappy

[Mr.B.]

great post, thanks for the info. i dont know what to think about this.....so much info is coming out of Iraq right now i just want them to get it doneeeeeeeee

[acceb75]

This is, and has been the holdup. Art 140 must be settled before the Kurds will accept any oil law. The Kurds were promised this would be settled already....their "leverage" to get what they want out of Art 140 is the holdup of the HCL.

Just heard an article read on the callsquad conference call which stated that billions of dinar would be distributed next week in order to satisfy article 140.

[DinarDana]

Just heard an article read on the callsquad conference call which stated that billions of dinar would be distributed next week in order to satisfy article 140.

I just heard the same thing on CallSquad, in fact when I heard last week on thecall squad that the HCL law had been complete I did research. I couldn't find confirmation that the HCL was complete. I found several articles stating by Kurdistan that the oil contracts that were to be signed will be illegal. I am equally confused, but I will stick by my research and this article, the HCL is not complete. I just sent this to "another site" for confirmation.

[lizabeth1]

just hanging around waiting for the dinar to rv..the nations debt ceiling has been raised so now I need to eradicate my debt...

[acceb75]

I have also been unable to find the actual documentation that the statement was made that no further oil contracts would be made until HCL was completed. Did you hear them say that? I have looked for the documentation but havent seen it.

[DinarDana]

I just heard the same thing on CallSquad, in fact when I heard last week on thecall squad that the HCL law had been complete I did research. I couldn't find confirmation that the HCL was complete. I found several articles stating by Kurdistan that the oil contracts that were to be signed will be illegal. I am equally confused, but I will stick by my research and this article, the HCL is not complete. I just sent this to "another site" for confirmation.

cL

Here is a link to a blog discussing oil contracts in Kurdistan and it states the HCL is not completed.

Saturday, July 31

....The Iraqi Government and the Energy committee are in loggerhead over the future of Iraq's Oil and Gas. The government want to go ahead with new licensing round with or without the new Hydrocarbon law been enacted, while the committee want to stop granting any new licences in January next year unless the law is passed.

Meanwhile Kurdistan Region has resumed exporting oil since January agreement. However, Kurdish ministers are becoming more frustrated with lack political progress in Baghdad. It appears that KRG has lost patience because of the continuation of political squabbling in Baghdad and gone ahead with granting new PSCs this week....

[Adam Montana]

Too much info coming out in mass numbers regarding capt 7, hcl, and currency. I know Adam and others say, "nothing significant happens during Ramadan", but I would not be surprised to see one if not all get acomplished during and shock the world...Just a thought...

I will HAPPILY dance in the streets if I am proven wrong!

[easyrider]

I will HAPPILY dance in the streets if I am proven wrong!

Adam that would be awesome id love to see you break dance in a turban

[GoldenLady]

Great Post and a terrific thread.

Thank you, Zaborniake and everyone for all of your thoughts.

What a wonderful opportunity we have being a part of it all.

We are truly blessed.

GoldenLady

“TeamWork Makes the Dream Work”

[tim5400]

Maybe all these IRAQI politicians should go to a DIVERSITY classover the ramadan holiday to learn to deal with their prejudisms....Just a thought...it may selay the rv while they learn to accept each other.... im killing myself over here

[BruceV]

Heck . We would all be break dancing in turbans lol

[BlueOrchid919]

Great thread, thanks for the posted article. There is still much discord and dissension.... Don't expect any major decisions made during Ramadan. Even though they are working, it is their major holiday and business matters are reduced.

Just heard an article read on the callsquad conference call which stated that billions of dinar would be distributed next week in order to satisfy article 140.

1.280 billion dinars were paid out to SOME of the displaced families in the northern part of Iraq. Another payout is scheduled next week for the marshland people. Article 140 is being worked on, but has a LONG way to go yet. It is part and parcel of the Erbil Agreement AND the HCL. Article 140 is NOT yet done.

Don't believe everything you hear....most of it is inaccurate and is creating great confusion. I have yet to hear one single conf call that does not disseminate inaccurate and confusing information. Listen to them, but then check for yourselves. There are MANY news articles coming out recently that totally contradict what the calls are offering.....

Edited August 1, 2011 by BlueOrchid919