Thursday, May 03, 2007

 

Kurds, Sunnis express reservations on draft oil law

Oil
(Herald Tribune) - Kurdish and Sunni Arab officials expressed deep reservations on Wednesday about the draft version of a national oil law and related legislation, misgivings that could derail one of the benchmark measures of progress in Iraq laid down by President George W. Bush. The draft law, which establishes a framework for the distribution of oil revenues, was approved by the Iraqi cabinet in late February after months of negotiations.
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, who have enjoyed de facto independence in the north since 1991, 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.
"We are worried about these ideas put into the annexes," Salih said in an interview in Erbil, the capital of Iraqi Kurdistan. "It worries us a lot." If the law and the annexes go to a vote before Parliament, a rejection by the Kurdish bloc alone, which holds 58 of 275 seats, would not doom the law. But Parliament operates by consensus, and members say it is almost certain that no law regarding oil will pass without the approval of the Kurds.
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."
Contributing a further layer of complication, a Sunni Arab legislator said Wednesday evening that the main Sunni Arab bloc, which has 44 legislative seats, objected to any discussion of the law in Parliament at this time. "Acceleration in presenting it is inappropriate since the security condition is not encouraging," said the legislator, Saleem Abdullah. He said Sunni Arabs were also worried that the law would give foreign companies too large a role in the country's oil industry. Sunni Arab political leaders supported cabinet approval of the draft law, but appear ambivalent now.
White House officials have said passage of the oil law is one of four major benchmarks they would like the Iraqi government to meet before fall.

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