Friday, July 27, 2007

 

PUK, KDP fall out over draft oil law

Oil, Politics, Kurdistan
Azzaman - The two main Kurdish factions ruling northern Iraq are on collision course regarding the way to approach the controversial oil draft law. The differences surfaced in a parliamentary session during which deputies representing the Patriotic Union of Kurdistan, a faction led by President Jalal Talabani, left the assembly in protest.
The 111-member Kurdish parliament was debating the draft and the legislators of the Kurdistan Democratic Party of Massoud Barzan, current head of the Kurdish region, wanted to push for its approval. The draft has yet to be approved by the Iraqi parliament but no date has been set for its debate in Baghdad amid mounting criticism of some of its terms.
PUK deputies and leaders fear the approval of the law while it is still debated by the central government might strain relations with Baghdad. While KDP officials say they need to pass the legislation so that they will not be bound by Iraqi parliament’s amendments to the draft law. But any contradiction between the two versions is certain to plunge in the country into a constitutional crisis.
The row comes as the Iraqi parliament has approved another draft law which permits foreign companies to construct refineries in the country. The Kurds have already defied the central government by letting foreign firms explore for oil and build small-scale refineries in their semi-independent region.
Oil has become a sensitive and divisive issue in Iraq as the country’s various ethnic and sectarian groups vie to have a say in the collection and distribution of royalties as well as exploration. Iraq has massive oil riches, estimated at 115 billion barrels of proven reserves. The country’s most prolific oil fields are situation in the south where more than 60 percent of reserves lies.
Other massive oil fields are to be found in the region of the disputed city of Kirkuk which the Kurds would like to add to their enclave. The central part of the country where the Iraqi Sunnis dominate is among the country’s poorest in reserves. The Sunnis now make the backbone of anti-U.S. resistance in Iraq.

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