Sunday, May 06, 2007

Draft oil law submitted to Parliament; Kurd issues

" Iraq's oil minister said the country's draft oil law was submitted to parliament on Wednesday, setting up potentially bitter negotiations over the creation of a framework for managing the country's vast petroleum supplies and distributing oil revenue.
. . . The prime minister of the Kurdistan Regional Government, Nechirvan Barzani, told Prime Minister Nouri al-Maliki that Kurds would not accept the oil law unless a piece of companion legislation, and accompanying annexes detailing revenue distribution, were amended. The changes would allow the Kurds greater concessions in developing oil fields in their territory, according to Mahmoud Othman, a Kurdish legislator.
. . . 'The Kurds will not accept the law to be put before the parliament as a first part and a second part -- it needs to be a package,' Othman said. 'The whole problem is because this law was made in a hurry, and the Americans were rushing everyone to do it. The details haven't been discussed, that's why there's no agreement.'
Mehdi Hafedh, a parliament member . . . said he believed that the Kurdish opposition was determined but that eventually a compromise solution would be reached." [1]

"In Iraq, the Kurds have taken issue with a new provision that was quietly packaged with the draft oil law by the Shiite-led Oil Ministry last month. The measure would essentially cede control of the management of nearly all known oil fields and related contracts to a state-run oil company to be established after passage of the law, said a spokesman for the Kurdish regional government.
The spokesman, Khalid Salih, said the provision violated a clause in the Constitution that says the central government must work with regional governments to determine management of known fields that have not been developed. The Kurds . . . have been arguing for maximum regional control over oil contracts.
The provision is part of four so-called annexes that are to be debated with the draft oil law in Parliament. Any objection to one or more of the annexes will stall passage of the law.
. . . A senior Shiite Arab legislator, Sheik Jalaladin al-Saghir, said the concerns raised by the Kurds amounted to a bargaining tactic. 'I think it’s a maneuver,' he said, adding that he believed the Kurds 'will move forward to pass the law since everybody needs it.' " [2]

sources
[1] Partlow, Joshua. (The Washington Post). Draft Oil Measure Sent to Parliament. May 3, 2007.
[2] Wong, Edward & Stolberg, Sheryl Gay. (The New York Times). Iraqi Blocs Opposed to Draft Oil Bill. May 3, 2007.

posted: sunday, may 6, 2007, 11:50 PM ET


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