After more than a decade of discussions and delays, Iraq is on the verge of enacting a significant oil and gas law that would involve international corporations in the nation’s oil production. This pivotal development is anticipated to unfold following municipal elections scheduled for December, as reported by Al-Sabah newspaper.
Despite these recent advancements, there are unresolved issues between the federal government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil. A central point of contention revolves around the proposed leadership of a federal oil and gas council, according to Ali Mashkour, a member of the Parliament’s Oil and Gas Committee, who spoke to Oil & Gas Middle East.
The suggestion is for Iraq’s Oil Minister to head this council. However, the Kurdistan region of Iraq is adamant about its Oil Minister playing a role in the council’s leadership as well.
Under the proposed law, Iraq’s governorates will receive a portion of the proceeds from oil exports based on their respective gross domestic product (GDP). This move aims to ensure equitable distribution of the country’s oil wealth among its regions.
Furthermore, the law grants each governorate the authority to independently grant oil concessions and enter into contracts for exploration and production. Iraq’s goal with this legislation is to leverage its oil resources to attract foreign investments and stimulate growth in its oil and gas sector.