Iraq may pass new law permitting foreign firms to own oil
An aerial view of an oil refinery on the outskirts of the city of Karbala in central Iraq. Photo: AFP
Baghdad (IraqiNess.com) – Iraq is about to enact an oil and gas law that would give international corporations a part in the nation’s oil output after more than ten years of discussions and delays.
This important step may take place after the municipal elections in December, according to Al-Sabah newspaper.
Despite the most recent developments, there are still outstanding issues between the federal government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil.
A planned federal oil and gas council’s proposed leadership is one of the main points of conflict, Ali Mashkour, a member of the Parliament’s Oil and Gas Committee, told Oil & Gas Middle East.
It is suggested that the Oil Minister of Iraq chair this council, but the Kurdistan region of Iraq insists that its own Oil Minister participate in the leadership of the council.
According to the proposed law, the governorates of Iraq will get an equal amount of the profits from oil exports depending on their gross domestic product (GDP).
With this action, the country’s oil will be distributed fairly and equally across its regions.
The law also gives every governorate the authority to unilaterally grant oil concessions and sign contracts for exploration and production.
With this legislation, Iraq aims to use its oil resources to attract foreign investments and promote its oil and gas sector.