Iraq, Kurds take step toward oil law compromise

[Aqua Dude]

Iraq, Kurds take step toward oil law compromise

By ASEEL KAMI | REUTERS

Published: Oct 27, 2011 18:04 Updated: Oct 27, 2011 18:04

BAGHDAD: Iraq and the semi-autonomous northern Kurdish region have agreed to work on amendments to a draft hydrocarbons law and reach an accord by year-end, potentially defusing a major row, Iraqi officials said on Thursday.

Kurdish officials have harshly criticized a draft law approved by Iraq’s cabinet in August that would have given the Arab-dominated central government in Baghdad more control over the nation’s oil reserves, the world’s fourth largest.

Adoption of a new oil and gas law has long been considered critical to the success of Iraq’s rapidly developing oil sector, although Baghdad has signed multibillion-dollar contracts with global oil majors despite antiquated legal safeguards.

Iraqi Prime Minister Nuri Al-Maliki and Prime Minister Barham Salih of the Kurdistan Regional Government agreed during talks in Baghdad this week that by Dec. 31, they will either amend a 2007 hydrocarbons law as agreed by all political factions or adopt the 2007 law as is, officials said.

“It has been agreed by the end of the year to finish a draft which is agreed on; either by making a new draft or to go back to the old draft,” central government spokesman Ali Al-Dabbagh said. “It depends on what will be agreed.”

Investors have been waiting for years for Iraq to pass modern laws as it tries to lure billions of dollars in foreign investment to rebuild after decades of war and international sanctions.

The Maliki-Salih agreement to agree appeared to sideline the controversial draft law approved by the cabinet in late August, which looked set to provoke a political fight in Maliki’s fragile coalition government. Kurds, who hold 56 seats in the Iraqi parliament, said the draft violated the constitution.

That draft would have centralized power over oil and gas resources, giving Baghdad added control over currently producing fields and over auctions for undeveloped fields.

The 2007 version agreed among the political blocs gave regional powers partial authority over their reserves.

Thamir Ghadhban, Maliki’s top energy adviser, said the leaders would prefer to adopt the old version without any amendments because time is running short.

“The version of (2007) ... has been agreed. There is a preference not to add amendments in order not to waste time,” Ghadhban told Reuters.

Kurdish officials were not immediately available to comment.

Beyond two months

Yahya Kubaisi, an analyst at Iraq’s Institute for Strategic Studies, said the dispute over the oil law is so profound it cannot be resolved in two months.

“There are objections or disputes on the philosophy that controls the oil and gas. Consequently I believe it (Maliki-Salih accord) is political propaganda,” Kubaisi said.

“For a law to be passed in this way is very difficult because the disputes are not about a word, (but) about the philosophy or the idea of who owns the oil and gas,” he said.

Political analyst Ibrahim Al-Sumaidaie said Maliki, a Shiite, reached accord with the Kurds after his main political rival, the Sunni-backed Iraqiya bloc, tried to recruit Kurdish lawmakers to bring down Maliki’s frail governing coalition.

Iraqiya and the Kurdish bloc are partners in the coalition agreed last December that gave Maliki the premiership.

“Whenever Iraqiya leaders come near the Kurds ... (who are) Maliki’s partners in the coalition, to blackmail Maliki, Maliki goes and presents a concession to his partners,” Sumaidaie said.

http://arabnews.com/middleeast/article525241.ece

+1 if you agree that this is FREAKING GREAT!!!!!

[ThePeoplesChamp]

Great News Today!

Thanks for the post Aqua Dude

[ClermontThinker]

Good news...

[Bobbydee]

Thanks for the post Aguadude. This is very good news if they can come to an agreement. I say accept the 2007 draft and work on improving it later. go RV!!!! God Bless Semper Fi

[Brisco]

Thanks for the post Aquadude hope they all just get along.

[bagdaddy]

Well, let's see----we will all agree on the 2007 draft or we are going to make a new draft law. Business as usual. What have you been doing on this matter for the past four years! Four frikkkkkkkkken years! Do not give any more control to Baghdad! Will you all please cut the crap and RV.

[IchDien]

If I read this right...either they pass an amendment now, or by Dec.31 the 2007 agreement passes...so either way...HCL is done, correct?

[easyrider]

They know they need to move forward with the troops leaving in about a month something has to give.

[Canuklady]

If I read this right...either they pass an amendment now, or by Dec.31 the 2007 agreement passes...so either way...HCL is done, correct?

Exactly! Either they amend it or the 2007 law passes AS IS!

Oh Aqua Dude, you just made my week! Great, great news! Finally a deadline for this! A firm deadline! Fist pumping in the air shouting: RV! RV! RV!

Edited October 27, 2011 by Canuklady

[IchDien]

Exactly! Either they amend it or the 2007 law passes AS IS!

Oh Aqua Dude, you just made my week! Great, great news! Finally a deadline for this! A firm deadline! Fist pumping in the air shouting: RV! RV! RV!

OK....so...HCL is done...Erbil is done...Ch7 is done...what's left?

[zaborniake]

Exactly! Either they amend it or the 2007 law passes AS IS!

Oh Aqua Dude, you just made my week! Great, great news! Finally a deadline for this! A firm deadline! Fist pumping in the air shouting: RV! RV! RV!

About as firm as Jell-O. Deadlines mean absolutely nothing to these people.

[Canuklady]

About as firm as Jell-O. Deadlines mean absolutely nothing to these people.

Ok that was funny. I know they've missed a ton of deadlines. I hear you. I am so over them stalling! I think there's a push to get this done before the troop withdrawal. I could be wrong, but, I really hope, and think, that this will get done this year. Now that so much of Iraq's debt has been forgiven, I think there's less of an incentive to stall. I'm hopeful anyway!

[IchDien]

About as firm as Jell-O. Deadlines mean absolutely nothing to these people.

I have eaten some really firm jello. You know, the kind that settles at the bottom of the tray and solidifies and becomes more like gummy bear than jello, yeah, that's the yummy jello. I'll take that jello over the regular mushy kind of jello any day!

[VanessaL4100]

OK....so...HCL is done...Erbil is done...Ch7 is done...what's left?

Wait wait, are these done? Did I miss something today?! that is awesome if so. I am guessing not in Gazette yet though? Thanks for the post, AD!

[Caye98]

Good news IF they actually stick to their comments. GREAT news if/when they get it SIGNED and VOTED into law...

[zaborniake]

Ok that was funny. I know they've missed a ton of deadlines. I hear you. I am so over them stalling! I think there's a push to get this done before the troop withdrawal. I could be wrong, but, I really hope, and think, that this will get done this year. Now that so much of Iraq's debt has been forgiven, I think there's less of an incentive to stall. I'm hopeful anyway!

I'm half joking and half seething over the deadlines. Honestly, I can't remember them setting a date and meeting it.