Monday, October 08, 2007
Barzani defends Kurdistan's oil deals
Oil, Kurdistan
(AP) -- The leader of Kurdistan on Sunday defended his self-governing region's oil deals with international companies, saying the agreements were not an attempt to usurp the nation's oil resources but a way to make them work for all the people of Iraq. Prime Minister Nechirvan Barzani, who wrote an opinion piece published in the Wall Street Journal, said eight contracts already had been signed and two more were expected soon.
The central government in Baghdad is upset about the deals, saying the Kurds should wait until the passage of a national oil law before signing any new contracts. But Barzani countered that the agreements are allowed under the Iraqi constitution, "which gives the regions of Iraq substantial control over natural resources."
"Many in the Iraqi Oil Ministry are locked in a time warp dating back to the regime of Saddam Hussein, in which Baghdad holds tight control of all the resources of Iraq and uses these resources to create obeisance and loyalty to the center," Barzani said.
If exploration leads to oil production, 85 percent of the profits would go to the government and the remainder would go to the companies. The profits would then be split -- giving 83 percent to the central government in Baghdad and 17 percent to the Kurds, Barzani sad. "We want peace and prosperity for the rest of Iraq as well," Barzani said. "We will contribute our fair share and more to that goal."
The Iraqi Cabinet approved a draft oil law last February and forwarded it to parliament, but parliament, citing legal technicalities, kicked it back to the Cabinet. The measure has been bogged down in negotiations ever since. Last August, the Kurds enacted their own oil law to regulate the oil sector in the region, further angering the central government in Baghdad.
"We waited five months for the Iraqi Assembly to pass the agreed draft. They have not acted and there is no sign that they will act anytime soon. We decided to lead from the front," Barzani said in Sunday's letter. "We are not a rogue province seeking an early escape from the chaos that has become Iraq."
The central government in Baghdad is upset about the deals, saying the Kurds should wait until the passage of a national oil law before signing any new contracts. But Barzani countered that the agreements are allowed under the Iraqi constitution, "which gives the regions of Iraq substantial control over natural resources."
"Many in the Iraqi Oil Ministry are locked in a time warp dating back to the regime of Saddam Hussein, in which Baghdad holds tight control of all the resources of Iraq and uses these resources to create obeisance and loyalty to the center," Barzani said.
If exploration leads to oil production, 85 percent of the profits would go to the government and the remainder would go to the companies. The profits would then be split -- giving 83 percent to the central government in Baghdad and 17 percent to the Kurds, Barzani sad. "We want peace and prosperity for the rest of Iraq as well," Barzani said. "We will contribute our fair share and more to that goal."
The Iraqi Cabinet approved a draft oil law last February and forwarded it to parliament, but parliament, citing legal technicalities, kicked it back to the Cabinet. The measure has been bogged down in negotiations ever since. Last August, the Kurds enacted their own oil law to regulate the oil sector in the region, further angering the central government in Baghdad.
"We waited five months for the Iraqi Assembly to pass the agreed draft. They have not acted and there is no sign that they will act anytime soon. We decided to lead from the front," Barzani said in Sunday's letter. "We are not a rogue province seeking an early escape from the chaos that has become Iraq."
Labels: draft oil law, Kurdistan, Massoud Barzani, oil deals
Thursday, October 04, 2007
Kurdistan signs four more oil deals
Oil, Kurdistan
AFP) - Iraq's Kurdistan regional government announced four more oil deals on Wednesday, ignoring criticism from Prime Minister Nuri al-Maliki's government and Washington of its unilateral sell-off of the country's national resources. The regional government said in a statement posted on its website that it had approved four contracts for exploration and production, and had sanctioned two new refinery projects in the Kurdish autonomous region in northern Iraq.
Two production sharing contracts (PSCs) had already been signed, with Heritage Energy Middle East Limited, a subsidiary of the Canadian firm Heritage Oil and Gas, and Perenco S.A., an affiliate of a French company of the same name. "The signing of the other two PSCs with experienced international companies will follow shortly," the statement said.
"The combined initial exploration investments on the upstream projects will be approximately 500 million dollars," it said. "Estimated investment on the two new refinery projects will be around 300 million dollars."
The Iraqi oil ministry did not immediately comment on the new deals, but Amira al-Baldawi, an MP from the Shiite coalition that leads the Baghdad government and a member of parliament's economic, investment and reconstruction committee, said the contracts were "illegal". "They shall be revised and put in accordance to the Iraqi law and the new oil law to be issued," Baldawi told AFP.
Last month, the Kurdish regional government inked a deal with Texas-based Hunt Oil Company, the first major oil contract awarded by any Iraqi authority to a foreign company since UN sanctions were imposed on Iraq when it invaded Kuwait in 1990. No details of the contract have been released but the Dallas company, which has links with the White House, has said it would begin its geological survey work in Dohuk province, near the border with Turkey, by the end of this year and would begin drilling in 2008.
The Hunt contract was declared "illegal" by Iraqi Oil Minister Hussein al-Shahristani, sparking a war of words with the regional government, which told him to stop meddling in its affairs and said he should be sacked. A senior US embassy official speaking on condition of anonymity told reporters in Baghdad last week that the Hunt deal had "needlessly elevated tensions" in Iraq. He said the US State Department had advised Hunt to wait for the Iraqi parliament to pass a much-anticipated oil and gas law that will establish a new framework for the industry but that it went ahead anyway.
The bill opens up the long state-dominated oil and gas sector to foreign investment and provides assurances that receipts will be shared equally between Iraq's 18 provinces, a measure Washington regards as key to efforts to reconcile the country's divided communities. The draft law was approved by Prime Minister Nuri al-Maliki's national unity cabinet in July but faces a tough passage in the 275-seat parliament, where the Kurdish bloc has 53 seats. The bill is expected to come before MPs this month.
The regional government said the PSC awarded to Energy Middle East Limited covered the 1,015 square kilometre (406 square mile) Miran Block in Sulaimaniyah Governorate, "a low to medium exploration risk area." Perenco S.A. has been awarded the "high exploration risk" 2,358 square kilometre (943 square mile) Sindi/Amedi Block along the Turkish border.
Regional natural resources minister Ashti Hawrami defended the deals. "The projects will spearhead international investment for the whole of Iraq," he said. "New oil discoveries under these contracts will bring large amounts of new revenues for sharing throughout Iraq."
Two production sharing contracts (PSCs) had already been signed, with Heritage Energy Middle East Limited, a subsidiary of the Canadian firm Heritage Oil and Gas, and Perenco S.A., an affiliate of a French company of the same name. "The signing of the other two PSCs with experienced international companies will follow shortly," the statement said.
"The combined initial exploration investments on the upstream projects will be approximately 500 million dollars," it said. "Estimated investment on the two new refinery projects will be around 300 million dollars."
The Iraqi oil ministry did not immediately comment on the new deals, but Amira al-Baldawi, an MP from the Shiite coalition that leads the Baghdad government and a member of parliament's economic, investment and reconstruction committee, said the contracts were "illegal". "They shall be revised and put in accordance to the Iraqi law and the new oil law to be issued," Baldawi told AFP.
Last month, the Kurdish regional government inked a deal with Texas-based Hunt Oil Company, the first major oil contract awarded by any Iraqi authority to a foreign company since UN sanctions were imposed on Iraq when it invaded Kuwait in 1990. No details of the contract have been released but the Dallas company, which has links with the White House, has said it would begin its geological survey work in Dohuk province, near the border with Turkey, by the end of this year and would begin drilling in 2008.
The Hunt contract was declared "illegal" by Iraqi Oil Minister Hussein al-Shahristani, sparking a war of words with the regional government, which told him to stop meddling in its affairs and said he should be sacked. A senior US embassy official speaking on condition of anonymity told reporters in Baghdad last week that the Hunt deal had "needlessly elevated tensions" in Iraq. He said the US State Department had advised Hunt to wait for the Iraqi parliament to pass a much-anticipated oil and gas law that will establish a new framework for the industry but that it went ahead anyway.
The bill opens up the long state-dominated oil and gas sector to foreign investment and provides assurances that receipts will be shared equally between Iraq's 18 provinces, a measure Washington regards as key to efforts to reconcile the country's divided communities. The draft law was approved by Prime Minister Nuri al-Maliki's national unity cabinet in July but faces a tough passage in the 275-seat parliament, where the Kurdish bloc has 53 seats. The bill is expected to come before MPs this month.
The regional government said the PSC awarded to Energy Middle East Limited covered the 1,015 square kilometre (406 square mile) Miran Block in Sulaimaniyah Governorate, "a low to medium exploration risk area." Perenco S.A. has been awarded the "high exploration risk" 2,358 square kilometre (943 square mile) Sindi/Amedi Block along the Turkish border.
Regional natural resources minister Ashti Hawrami defended the deals. "The projects will spearhead international investment for the whole of Iraq," he said. "New oil discoveries under these contracts will bring large amounts of new revenues for sharing throughout Iraq."
Labels: draft oil law, Heritage Energy Middle East Limited, Hunt Oil Company, KRG, Kurdistan, oil deals, Perenco S.A., PSCs, refinery projects
Friday, September 14, 2007
Political parties deadlocked over Iraqi oil legislation
Oil
(AP) -- Iraq's main political parties are deadlocked over a key oil law and the legislation has been sent back to party leaders to see if they can salvage it, an official involved in the talks said Thursday. The Wednesday meeting failed after Shiite and Sunni Arab representatives were unable to agree with Kurdish negotiators, said the official, who represented a Shiite party in the talks and spoke on condition of anonymity because he was not authorized to discuss the process.
Deputy Prime Minister Barham Saleh, a Kurd, confirmed there were disagreements but refused to give details. "There are problems but the negotiations are still going on," he told The Associated Press. The Iraqi Cabinet approved a draft and forwarded it to parliament last February, a move hailed by the White House as a breakthrough in efforts to approve critical legislation for the nation's future. But parliament kicked the bill back to the Cabinet citing legal technicalities and the measure has been bogged down in further negotiations ever since.
At Wednesday's meeting, Shiites and Sunni Arabs agreed on language giving more powers to the predominantly Sunni center of the country - where there is little oil - while Kurds argued in favor of more control for their semiautonomous and oil-rich northern region as outlined in the Cabinet-approved version, the official said.
Other disagreements came over how to manage oil fields, both operating and as-yet undiscovered, the official said. The Shiites and Sunni Arabs argued that contracts covering fields that produce more than 100,000 barrels of oil per day must have parliamentary approval, and that contracts from smaller fields should be approved by the state-run National Oil Company, the official said. The Kurdish side argued that contracts should be decided by regional authorities, he said.
Deputy Prime Minister Barham Saleh, a Kurd, confirmed there were disagreements but refused to give details. "There are problems but the negotiations are still going on," he told The Associated Press. The Iraqi Cabinet approved a draft and forwarded it to parliament last February, a move hailed by the White House as a breakthrough in efforts to approve critical legislation for the nation's future. But parliament kicked the bill back to the Cabinet citing legal technicalities and the measure has been bogged down in further negotiations ever since.
At Wednesday's meeting, Shiites and Sunni Arabs agreed on language giving more powers to the predominantly Sunni center of the country - where there is little oil - while Kurds argued in favor of more control for their semiautonomous and oil-rich northern region as outlined in the Cabinet-approved version, the official said.
Other disagreements came over how to manage oil fields, both operating and as-yet undiscovered, the official said. The Shiites and Sunni Arabs argued that contracts covering fields that produce more than 100,000 barrels of oil per day must have parliamentary approval, and that contracts from smaller fields should be approved by the state-run National Oil Company, the official said. The Kurdish side argued that contracts should be decided by regional authorities, he said.
Labels: Barham Saleh, draft oil law
KRG spokesman calls for oil minister's resignation
Oil
(Voices of Iraq) - A senior Kurdish official on Thursday criticized statements recently made by the Iraqi oil minister on the relation between the federal government and Kurdistan region government, saying "it will impede the on-going negotiations on approving the oil draft law." "The recent statements by Shehristani will neither help the political process nor the on-going negotiations on the oil and gas and wealth sharing draft laws," Falah Mustafa, Foreign Relations Official in Kurdistan region government, told the independent news agency Voices of Iraq (VOI) over the phone.
Mustafa made comments to VOI on a statement made early this week by the Iraqi Oil Minister Hussein al-Shehristani in which he said that his ministry would not recognize the oil contracts concluded by the Kurdistan government with foreign companies. On Sunday, Shehristani told the government-funded al-Sabaah daily that the oil ministry had no commitment towards the oil investment contracts signed by officials from Kurdistan region government.
Mustafa accused Shehrstani of being "negative all the way," saying that he should recognize that the moves taken by Kurdistan government on oil investment contracts "come in full conformity with the powers given to it by the Iraqi constitution." Shehristani made his statement in reference to the oil contracts concluded by Kurdistan government with Hunt Oil Group for oil investment in Duhuk Kurdistan province last week.
The Iraqi Oil Minister's statement sparked a wave of criticism in Iraq's Kurdistan region leading the official spokesman for Kurdistan government to call for al-"Shehrstani's resignation." Over the last seven months, marathonic negotiations have been underway among Iraqi political blocs on a draft law on oil. Among the main differences was the relation between the federal government and the local governments in the region(s) as to the conclusion of oil investment contracts.
Mustafa made comments to VOI on a statement made early this week by the Iraqi Oil Minister Hussein al-Shehristani in which he said that his ministry would not recognize the oil contracts concluded by the Kurdistan government with foreign companies. On Sunday, Shehristani told the government-funded al-Sabaah daily that the oil ministry had no commitment towards the oil investment contracts signed by officials from Kurdistan region government.
Mustafa accused Shehrstani of being "negative all the way," saying that he should recognize that the moves taken by Kurdistan government on oil investment contracts "come in full conformity with the powers given to it by the Iraqi constitution." Shehristani made his statement in reference to the oil contracts concluded by Kurdistan government with Hunt Oil Group for oil investment in Duhuk Kurdistan province last week.
The Iraqi Oil Minister's statement sparked a wave of criticism in Iraq's Kurdistan region leading the official spokesman for Kurdistan government to call for al-"Shehrstani's resignation." Over the last seven months, marathonic negotiations have been underway among Iraqi political blocs on a draft law on oil. Among the main differences was the relation between the federal government and the local governments in the region(s) as to the conclusion of oil investment contracts.
Labels: draft oil law, Falah Mustafa, Hunt Oil Co., Hussain al-Shahristani, oil contracts
Thursday, September 13, 2007
Oil minister - Iraq to issue international oil contracts despite delay of oil law
Oil
(Iraq Directory) - Iraqi Oil Minister, Hussein Shahrastani, said on Saturday that Iraq will issue tenders for international oil companies to develop its current fields even if the long-awaited law to regulate its energy sector was postponed. Shahrastani said in an oil conference in Dubai, "Although we expect this new law for political reasons, if postponed, we will go forward and begin discussions with international oil companies, especially in the current fields to increase production levels."
He added "there is no legislative vacuum. There is a law prevails allow us to carry out any contract for the development of the fields. We will soon issue tenders, before the end of the year, for international oil companies to work with us to develop the current fields in addition to a major plan for gas."
Shahrastani said last month that Iraq will call for open competition, including about one third of the main fields in September as soon as the new federal oil law is issued. But now it seems that tenders will be issued whether the new law was issued or not.
The Iraqi government approved the draft law in July after months of talks, but so far it was not discussed in Parliament which resumed its sessions this month after the summer recess.
Shahrastani re-newed comments of other Iraqi officials that the law of oil should be approved "within a few weeks", despite the fact that many differences still exist on the details.
He said that the postponement of the bill will not delay plans for the development of the sector which provides more than 90% of the Iraqi government revenues, and which is in dire need of investment after a decade of sanctions and four years of violence since the invasion which was led by the United States in 2003.
Shahrastani said, "Iraq has an oil-law, and it has always been the prevailing law until the approval the new one issued. The Oil Ministry can sign any contracts for the development of its energy capacity and increase oil production ... There is a need for this for the reconstruction."
He added "there is no legislative vacuum. There is a law prevails allow us to carry out any contract for the development of the fields. We will soon issue tenders, before the end of the year, for international oil companies to work with us to develop the current fields in addition to a major plan for gas."
Shahrastani said last month that Iraq will call for open competition, including about one third of the main fields in September as soon as the new federal oil law is issued. But now it seems that tenders will be issued whether the new law was issued or not.
The Iraqi government approved the draft law in July after months of talks, but so far it was not discussed in Parliament which resumed its sessions this month after the summer recess.
Shahrastani re-newed comments of other Iraqi officials that the law of oil should be approved "within a few weeks", despite the fact that many differences still exist on the details.
He said that the postponement of the bill will not delay plans for the development of the sector which provides more than 90% of the Iraqi government revenues, and which is in dire need of investment after a decade of sanctions and four years of violence since the invasion which was led by the United States in 2003.
Shahrastani said, "Iraq has an oil-law, and it has always been the prevailing law until the approval the new one issued. The Oil Ministry can sign any contracts for the development of its energy capacity and increase oil production ... There is a need for this for the reconstruction."
Labels: draft oil law, Hussain al-Shahrastani, international oil companies, Iraq, oil contracts
Wednesday, August 29, 2007
Sadr Movement Denies That They Agree With The Oil And Gas Law
Politics, Oil
(Al Sabah Al Jadeed Newspaper) - 28 AUG - On Monday, Nassar Al Rubaie, the Chief of the Sadr Movement’s bloc in the Iraqi Parliament, issued a “denial” of recent claims that the Sadr Movement supports the Oil and Gas Law. Al Rubaie also demanded: items must be added to this Law, in order to prevent the issuing of contracts to oil companies (of countries) which have (Occupation) armies here in Iraq!
Al Rubaie clarified: there are many problems with the (Draft) Oil and Gas Law; these problems include the distribution of Oil and Gas revenue. (Again,) Al Rubaie stated: the Sadr Movement demands that oil companies…of countries which have (military) forces in Iraq…not be allowed to receive Oil and Gas contracts!
Al Rubaie added: we can not (should not) deal with the companies (of those countries) because that would help finance their (military) forces. We want to put more pressure on these forces… in order to achieve their prompt withdrawal from Iraq!
Al Rubaie clarified: there are many problems with the (Draft) Oil and Gas Law; these problems include the distribution of Oil and Gas revenue. (Again,) Al Rubaie stated: the Sadr Movement demands that oil companies…of countries which have (military) forces in Iraq…not be allowed to receive Oil and Gas contracts!
Al Rubaie added: we can not (should not) deal with the companies (of those countries) because that would help finance their (military) forces. We want to put more pressure on these forces… in order to achieve their prompt withdrawal from Iraq!
Labels: draft oil law, Nassar Al Rubaie, Sadr bloc
Tuesday, August 07, 2007
KRG passes draft oil and gas law
Oil, Kurdistan
(Voices of Iraq) - Iraq's Kurdistan parliament passed on Monday the draft law of oil and gas concerning the northern Iraqi region after more than a month of debate. "Kurdistan parliament adopted today all articles concerning the region's oil and gas draft law after a debate that continued for eight extraordinary sessions," Kurdistan MP Ariz Abdullah told the independent news agency Voices of Iraq (VOI).
The 62-article-bill was endorsed after amendments were made to some articles, Abdullah said. Meanwhile, the media spokesman for the Kurdistan parliament Tareq Jawhar told VOI "following extensive discussions and crossing out five articles from the oil and gas draft law, the bill was passed in today's session."
The media spokesman added "the House also added two more articles to the adopted draft law concerning allocating part of the oil revenues to save environment and to families of victims killed under the previous regime." The 111-seat-Kurdistan parliament is composed of two major blocs, the Green represented by members of the Talabani-led Patriotic Union of Kurdistan and the Yellow represented by members of the Barazani-led Kurdistan Democratic Party.
The blocs were named after the colors they adopted during the first general election held in Kurdistan region in 1992. There is also another draft law on oil and gas in the whole country, which expected to be discussed in the Federal parliament in September after it will be back from recess. According to the presented oil draft law to the central parliament, there should be no contradiction between the oil law, if passed by the central parliament, and that adopted by regions, otherwise the law adopted by the Iraqi House will be the effective.
The draft oil and gas law for the management of oil resources is considered one of the most controversial issues in Iraq, and there are differences among political blocs on the law regarding the equitable distribution of revenue. The law, if approved by parliament, will give Iraqi and foreign investors the right to set up establishments and oil refineries and use them for 50 years.
Most of Iraq's known oil reserves are located in the Shiite-dominated south and the Kurdish north. Iraq sits on the world's third-largest oil reserves and officials have sought, since last year, to finalize the draft law. The law is vital for attracting foreign investment to Iraq, to boost its oil output and rebuild its economy. The Kurdistan regional government has signed several agreements with foreign companies regarding investments in the oil sector.
The 62-article-bill was endorsed after amendments were made to some articles, Abdullah said. Meanwhile, the media spokesman for the Kurdistan parliament Tareq Jawhar told VOI "following extensive discussions and crossing out five articles from the oil and gas draft law, the bill was passed in today's session."
The media spokesman added "the House also added two more articles to the adopted draft law concerning allocating part of the oil revenues to save environment and to families of victims killed under the previous regime." The 111-seat-Kurdistan parliament is composed of two major blocs, the Green represented by members of the Talabani-led Patriotic Union of Kurdistan and the Yellow represented by members of the Barazani-led Kurdistan Democratic Party.
The blocs were named after the colors they adopted during the first general election held in Kurdistan region in 1992. There is also another draft law on oil and gas in the whole country, which expected to be discussed in the Federal parliament in September after it will be back from recess. According to the presented oil draft law to the central parliament, there should be no contradiction between the oil law, if passed by the central parliament, and that adopted by regions, otherwise the law adopted by the Iraqi House will be the effective.
The draft oil and gas law for the management of oil resources is considered one of the most controversial issues in Iraq, and there are differences among political blocs on the law regarding the equitable distribution of revenue. The law, if approved by parliament, will give Iraqi and foreign investors the right to set up establishments and oil refineries and use them for 50 years.
Most of Iraq's known oil reserves are located in the Shiite-dominated south and the Kurdish north. Iraq sits on the world's third-largest oil reserves and officials have sought, since last year, to finalize the draft law. The law is vital for attracting foreign investment to Iraq, to boost its oil output and rebuild its economy. The Kurdistan regional government has signed several agreements with foreign companies regarding investments in the oil sector.
Labels: draft oil law, KDP, KRG, PUK
Monday, August 06, 2007
Top Dawa party member - no oil law under occupation
Oil
(United Press International) - A top member of the Iraqi prime minister's party says a law governing oil reserves should be delayed until occupation forces leave the country. Ali al-Adeeb, a senior member of the Dawa Party and a member of Iraq's Parliament, also said the Iraq National Oil Co. should take the lead in developing and managing Iraq's discovered but undeveloped oil, the Al Sabah newspaper reports.
This could cause a serious and vital rift between Dawa's coalition partner, the Kurdish Alliance. The coalition is already facing internal strife as well as threats from parties that have withdrawn. The Kurds oppose INOC's role without some competition with private companies, and this disagreement is one of the reasons the oil law has been stuck in negotiations for more than a year.
"The government must have a list of the oil wells that are going to be exploited," Adeeb said. He also voiced opposition to contracts that give any non-INOC company ownership of the oil. The Bush administration has been pushing for the oil law as a measure that would lead to reconciliation. Maliki has backed the call, to no avail. "Timing discussions and decisions on the oil law while the multi-national forces still exist in Iraq is a huge mistake," Adeeb said.
This could cause a serious and vital rift between Dawa's coalition partner, the Kurdish Alliance. The coalition is already facing internal strife as well as threats from parties that have withdrawn. The Kurds oppose INOC's role without some competition with private companies, and this disagreement is one of the reasons the oil law has been stuck in negotiations for more than a year.
"The government must have a list of the oil wells that are going to be exploited," Adeeb said. He also voiced opposition to contracts that give any non-INOC company ownership of the oil. The Bush administration has been pushing for the oil law as a measure that would lead to reconciliation. Maliki has backed the call, to no avail. "Timing discussions and decisions on the oil law while the multi-national forces still exist in Iraq is a huge mistake," Adeeb said.
Labels: Ali al-Adeeb, Dawa party, draft oil law, INOC, Iraq National Oil Co.
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.
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.
Labels: draft oil law, Jalal Talabani, KDP, Massoud Barzani, PUK
Thursday, July 19, 2007
Iraqi experts ask MPs not to approve draft oil law
Oil
(Azzaman) - More than 100 Iraqi experts and former oil officials have sent a letter to parliament asking legislators not to pass the new draft oil law in its current form. The experts said if passed as it is without major revisions and amendments the law will intensify current division and civil strife.
They said if certain paragraphs and annexes were not amended the country risks losing part of its massive oil wealth to foreign investors. The letter, a copy of which was faxed to the newspaper, is the latest in a series of protests from political factions, traded unions and professionals in the country.
The government ratified the draft early July but the experts said it would be unwise if the legislators passed the law while the various political factions have yet to agree on how to revise the constitution. How to exploit and utilize Iraqi oil resources is among several thorny issues in the constitution which the government is under pressure to amend.
They said the parliament should shoulder its responsibilities and reject any oil development deal without its consent. In the present draft, Iraqi regions and provinces have the right to strike such deals on their own. The Kurds have already put several exploration blocks in their territory for grabs while the controversial draft is still being debated, the experts said.
On the role foreign firms, the experts said it should be restricted to exploration and infrastructure and forbid the allocation of oil reserves to them. The experts called on parliament to re-launch the National Oil Company in a manner that will enable it to run and administer all of the country’s oil fields and reserves. The draft only assigns certain oil fields to the company.
They said if certain paragraphs and annexes were not amended the country risks losing part of its massive oil wealth to foreign investors. The letter, a copy of which was faxed to the newspaper, is the latest in a series of protests from political factions, traded unions and professionals in the country.
The government ratified the draft early July but the experts said it would be unwise if the legislators passed the law while the various political factions have yet to agree on how to revise the constitution. How to exploit and utilize Iraqi oil resources is among several thorny issues in the constitution which the government is under pressure to amend.
They said the parliament should shoulder its responsibilities and reject any oil development deal without its consent. In the present draft, Iraqi regions and provinces have the right to strike such deals on their own. The Kurds have already put several exploration blocks in their territory for grabs while the controversial draft is still being debated, the experts said.
On the role foreign firms, the experts said it should be restricted to exploration and infrastructure and forbid the allocation of oil reserves to them. The experts called on parliament to re-launch the National Oil Company in a manner that will enable it to run and administer all of the country’s oil fields and reserves. The draft only assigns certain oil fields to the company.
Labels: draft oil law, foreign investors, Iraq National Oil Co.
Monday, July 16, 2007
MPs opposing draft oil law want to put it to referendum
Oil
(Azzaman) - Iraqi legislators opposing the new draft law for the exploration of oil and the distribution of oil revenues say its passage should be determined by the Iraqi people. Representatives for power blocs have suggested holding a nation-wide referendum to determine whether the Iraqi people are happy about its terms.
The draft law, which the government of Prime Minister Nouri al-Maliki has passed, needs the parliament’s approval to become law. The law’s opponents have prepared a bill calling for a new referendum which, in their opinion, will spare the country further infighting and division. The draft oil law if passed without substantial amendments is bound to deepen divisions between various Iraqi political factions and different sects.
The draft was revised by the State Consultative Council, the highest judicial body whose decisions are binding, but the revisions were turned down by the Kurds, the second largest bloc in the current coalition government. “The amendments the council had introduced were unacceptable because they would have undermined the prerogatives of the Kurdish autonomous region,” said Ashti Horami, minister of natural resource in the Kurdish regional government.
The draft’s opponents say the government and the parliament are under obligation to take into account the amendments by the judicial council. According to the amendments the central government should be he only body with power to sign oil contracts, and handle oil exports and proceeds. But the Kurds and their Shiite allies want regional and provincial governments to have the authority to sign oil deals and determine other issues related to extraction, refining and exports.
Most of Iraq’s oil wealth is in the predominantly Shiite provinces in southern Iraq. The fields of Basra and Missan hold more than 65% of the country’s proven reserves estimated at 115 billion barrels. Other major oil fields are situation in Kirkuk, a disputed province which the Kurds say they are determined to annex. Central Iraq, a predominantly Sunni region, is the poorest in the country with regard to oil fields; hence most of the opposition to the draft law comes from Sunni factions in the parliament.
The draft law, which the government of Prime Minister Nouri al-Maliki has passed, needs the parliament’s approval to become law. The law’s opponents have prepared a bill calling for a new referendum which, in their opinion, will spare the country further infighting and division. The draft oil law if passed without substantial amendments is bound to deepen divisions between various Iraqi political factions and different sects.
The draft was revised by the State Consultative Council, the highest judicial body whose decisions are binding, but the revisions were turned down by the Kurds, the second largest bloc in the current coalition government. “The amendments the council had introduced were unacceptable because they would have undermined the prerogatives of the Kurdish autonomous region,” said Ashti Horami, minister of natural resource in the Kurdish regional government.
The draft’s opponents say the government and the parliament are under obligation to take into account the amendments by the judicial council. According to the amendments the central government should be he only body with power to sign oil contracts, and handle oil exports and proceeds. But the Kurds and their Shiite allies want regional and provincial governments to have the authority to sign oil deals and determine other issues related to extraction, refining and exports.
Most of Iraq’s oil wealth is in the predominantly Shiite provinces in southern Iraq. The fields of Basra and Missan hold more than 65% of the country’s proven reserves estimated at 115 billion barrels. Other major oil fields are situation in Kirkuk, a disputed province which the Kurds say they are determined to annex. Central Iraq, a predominantly Sunni region, is the poorest in the country with regard to oil fields; hence most of the opposition to the draft law comes from Sunni factions in the parliament.
Labels: draft oil law, referendum, State Consultative Council
Provincial Councils Of Iraq Reject The Draft Oil Law
Oil
(Al Mutamar Newspaper) - 16 JUL - Ten Iraq Provincial Councils from central and southern Iraq announced their rejection of the draft oil law. This decision came after an emergency meeting in Basrah. The Provincial Council organization’s spokesman, Aqil Talib, said that many articles in the oil law must be changed.
The Provincial Council organization held this meeting to express their rejection of the draft oil law which has been presented by the Prime Minister. The Provincial Council organization rejects some articles in the draft oil law, such as the election of governors because this is an improper mechanism to elect a governor. Also, the oil law does not allow the provinces benefit from the oil income because all of the income will go to the central government.
In a related issue, Shiite Alliance Parliament member, Daghir Al Musawi, confirmed that the Parliament is working to give more authority to the provinces and the oil law is not unconstitutional. He added, “We want to give more authority to the provinces and the regions as well as to decrease the authority of the central government.”
In a related issue, Shiite Alliance Parliament member, Daghir Al Musawi, confirmed that the Parliament is working to give more authority to the provinces and the oil law is not unconstitutional. He added, “We want to give more authority to the provinces and the regions as well as to decrease the authority of the central government.”
Basrah Provincial Council chief, Mohammed Saddoun Al Abadi pointed out that the new oil law states that the provinces should have new elections for governors. Al Abadi indicated that the emergency meeting had some recommendations which are: to decrease the central government’s authority and to give more authority to the provincial councils.
Labels: Aqil Talib, draft oil law, provincial councils
Friday, July 13, 2007
Arabs in Kirkuk reject draft oil law
Oil
(Azzaman) - Iraqi Arabs in the disputed oil-rich city of Kirkuk have thrown their weight behind groups opposing the new draft oil law. The Arab Consultative Council in Kirkuk, an umbrella group for Arabs in the area, said the draft in its current shape puts “narrow regional interests” above national interests. In a statement, the council urged the parliament to turn down the draft unless it is substantially revised.
The government has passed the draft to the parliament after approving it, sparking a torrent of criticism from various political factions. The opponents of the draft say the draft in its current shape is bound to create further divisions and disparity among the country’s ethnic groups and sects. They want the central government and not Iraqi autonomous regions to have the biggest say in exploring, extracting, refining and selling of crude as well as the distribution of its royalties.
The draft gives regions, such the one currently under the control of Iraq Kurdish factions and their militias, the right to sign oil deals and keep a certain portion of oil proceeds to themselves. The council’s statement is the first indication of the troubles the draft law is going to cause if turned into law.
The government has passed the draft to the parliament after approving it, sparking a torrent of criticism from various political factions. The opponents of the draft say the draft in its current shape is bound to create further divisions and disparity among the country’s ethnic groups and sects. They want the central government and not Iraqi autonomous regions to have the biggest say in exploring, extracting, refining and selling of crude as well as the distribution of its royalties.
The draft gives regions, such the one currently under the control of Iraq Kurdish factions and their militias, the right to sign oil deals and keep a certain portion of oil proceeds to themselves. The council’s statement is the first indication of the troubles the draft law is going to cause if turned into law.
Labels: Arab Consultative Council in Kirkuk, Arabs, draft oil law, Kirkuk
KRG rejects latest draft oil law
Oil
(Arabian Business) - Meaningful debate of Iraq's draft oil law could be stifled by news that the Kurdistan Regional Government (KRG) will not accept the version currently before parliament. Last week there was confusion about the draft that had been forwarded by Iraq's cabinet legal committee. Now it has become clear, in the words of the KRG's minister of natural resources Ashti Hawrami, "that the law has been changed fundamentally, therefore it cannot be accepted by the KRG."
According to Eamad Mazouri, the Kurdistan Regional Government's (KRG) general representative in the UAE, Baghdad had said the changes to the draft were only linguistic. "According to Hawrami, Baghdad was supposed to send [the KRG] the draft law along with annexes, including the one defining the distribution of revenues and a contract sample," said Mazouri. "However [the KRG] only received a revised version of the draft law and one annex concerning the distribution of oil revenues."
In a conference at the Kurdistan parliament, attended by both Iraqi and Kurdish MPs, the federal government speaker Ali Al-Dabahg claimed that the changes are not binding, since the whole draft law will need to be voted on in the Iraqi parliament. "The KRG will continue to insist on Kurdistan's rights in this law, as well as any other law that is against the current constitution [or] trying to diminish Kurds' legitimate rights," said Mazouri.
According to Eamad Mazouri, the Kurdistan Regional Government's (KRG) general representative in the UAE, Baghdad had said the changes to the draft were only linguistic. "According to Hawrami, Baghdad was supposed to send [the KRG] the draft law along with annexes, including the one defining the distribution of revenues and a contract sample," said Mazouri. "However [the KRG] only received a revised version of the draft law and one annex concerning the distribution of oil revenues."
In a conference at the Kurdistan parliament, attended by both Iraqi and Kurdish MPs, the federal government speaker Ali Al-Dabahg claimed that the changes are not binding, since the whole draft law will need to be voted on in the Iraqi parliament. "The KRG will continue to insist on Kurdistan's rights in this law, as well as any other law that is against the current constitution [or] trying to diminish Kurds' legitimate rights," said Mazouri.
Labels: Ali Al-Dabahg, Ashti Hawrami, draft oil law, Eamad Mazouri, KRG
Monday, July 09, 2007
Oil law to plunge country into more chaos
(Azzaman) - Disappointment will be the only fruit that we are going to reap from the new oil law as we did from all other U.S.-sponsored ‘milestones’. Instead of “a gift to all the Iraqi people” as Prime Minister Nouri al-Maliki described the draft oil law his government approved a few days ago, there are clear signals that the bill will turn into ‘poison’ for Iraq as a nation.
It is an oppressive bill that Maliki and his ministers signed and passed to parliament for approval. Many believed the government’s assertions that it would substantially review the bill originally drafted almost a year ago and rejected outright by almost all of the country’s political hues. Iraqi oil experts, national figures, Iraqis of note, politicians and numerous factions in the government had warned that unless redrafted, the bill will definitely become a cause for infighting and eventual division of the country.
But the government paid no heed to the warnings and, according to a senior official who took part in the recent deliberations hardly any changes or revisions were made. The official, who did not wish his name be revealed, accused Maliki’s government of undermining the very national reconciliation it says it is pursuing.
“The target behind the idea of the oil law was to cement national unity and reconciliation and not undermine them. We wanted this law to bring Iraqis together and not drive them apart,” the official was quoted as saying.
We cannot tell the identity of the official but the fact that the government has not denied the statement and that the experts still see the draft as a potential danger against what has become Iraqis’ only source of livelihood, there is good reason to believe this official’s warnings.
Since the bill has not been revised to respond to strong criticism and opposition it initially generated, Maliki’s credibility and that of his government comes into question. The whole country was pleased to hear the law would be revised in a manner that will bring the disparate Iraqi groups together and send a strong signal of national reconciliation.
But apparently the government exerted no effort to rectify the imbalances in the draft law and as a result we find ourselves once again in the square of disappointment, complaining to the Almighty against those determined to steal our happiness and sell us their lies and fabrications.
There is no need to remind the government and the nation that the draft law put before the parliament is a time bomb, threatening what remains of the country’s unity as well as the rights of current and future generations.
It is an oppressive bill that Maliki and his ministers signed and passed to parliament for approval. Many believed the government’s assertions that it would substantially review the bill originally drafted almost a year ago and rejected outright by almost all of the country’s political hues. Iraqi oil experts, national figures, Iraqis of note, politicians and numerous factions in the government had warned that unless redrafted, the bill will definitely become a cause for infighting and eventual division of the country.
But the government paid no heed to the warnings and, according to a senior official who took part in the recent deliberations hardly any changes or revisions were made. The official, who did not wish his name be revealed, accused Maliki’s government of undermining the very national reconciliation it says it is pursuing.
“The target behind the idea of the oil law was to cement national unity and reconciliation and not undermine them. We wanted this law to bring Iraqis together and not drive them apart,” the official was quoted as saying.
We cannot tell the identity of the official but the fact that the government has not denied the statement and that the experts still see the draft as a potential danger against what has become Iraqis’ only source of livelihood, there is good reason to believe this official’s warnings.
Since the bill has not been revised to respond to strong criticism and opposition it initially generated, Maliki’s credibility and that of his government comes into question. The whole country was pleased to hear the law would be revised in a manner that will bring the disparate Iraqi groups together and send a strong signal of national reconciliation.
But apparently the government exerted no effort to rectify the imbalances in the draft law and as a result we find ourselves once again in the square of disappointment, complaining to the Almighty against those determined to steal our happiness and sell us their lies and fabrications.
There is no need to remind the government and the nation that the draft law put before the parliament is a time bomb, threatening what remains of the country’s unity as well as the rights of current and future generations.
Labels: draft oil law
Iraqi Sadrists to come up with ‘reconciliation initiative'
Politics
(Azzaman) - The movement led by Iraqi Shiite cleric Moqtada al-Sadr says it intends to present a new reconciliation plan to end the current political stalemate.
Differences between Iraqi political factions with representatives in the parliament have aggravated recently mainly due to the government’s passage of a controversial oil law under which foreign firms will be given the right to exploit and administer Iraqi oil fields. The law also gives a big say for Iraqi regions and governorates in oil exploration, output and export.
Sunni Scholars have issued a decree branding anyone accepting the law a traitor and Sunni members of parliament, who have already boycotted its sessions, have vowed to resist the law. The Sadr movement had withdrawn its 30 deputies but, according to Bahaa al-Aaraji, a senior Sadr aide, the deputies have decided to rejoin with the specific aim of defeating the passage of the law.
Aaraji said the movement’s leader would announce the initiative which he described as a ‘new national reconciliation plan.’ Araji gave no details of the move but Sadr had previously made such initiatives which never saw light. The movement, though opposing U.S. occupation and critical of the current government, is accused of fomenting sectarian strife and operating its own ‘death squads’.
Differences between Iraqi political factions with representatives in the parliament have aggravated recently mainly due to the government’s passage of a controversial oil law under which foreign firms will be given the right to exploit and administer Iraqi oil fields. The law also gives a big say for Iraqi regions and governorates in oil exploration, output and export.
Sunni Scholars have issued a decree branding anyone accepting the law a traitor and Sunni members of parliament, who have already boycotted its sessions, have vowed to resist the law. The Sadr movement had withdrawn its 30 deputies but, according to Bahaa al-Aaraji, a senior Sadr aide, the deputies have decided to rejoin with the specific aim of defeating the passage of the law.
Aaraji said the movement’s leader would announce the initiative which he described as a ‘new national reconciliation plan.’ Araji gave no details of the move but Sadr had previously made such initiatives which never saw light. The movement, though opposing U.S. occupation and critical of the current government, is accused of fomenting sectarian strife and operating its own ‘death squads’.
Labels: Bahaa al-Aaraji, draft oil law, Moqtada Al-Sadr
Wednesday, July 04, 2007
Parliament debate on draft oil law unlikely to go smoothly
Oil
(Reuters) - Iraq's parliament may take a week to start debating a landmark draft oil law, officials said on Wednesday, as complaints from Kurdish authorities and Sunni Arab politicians signaled its passage could be rocky. Washington has pushed Iraq for months to speed up passage of the law and other pieces of legislation, which are seen as vital to curbing sectarian violence and healing deep divisions between majority Shi'ites and minority Sunni Arabs.
Presentation of the draft to parliament after the cabinet approved it on Tuesday was a big step towards meeting a key political target set by the United States. But Mohammed Abu Bakr, head of parliament's media office, said the law had to first go to the energy and oil committee. "We need seven days to get the draft on the agenda of parliament to discuss it," he said.
The oil law is intended to ensure a fair distribution of the world's third largest oil reserves, which are located mainly in the Shi'ite south and the Kurdish north of Iraq. Sunni Arabs, the backbone of the insurgency, live mainly in central provinces that have little proven oil wealth and have long feared they would miss out on any windfall.
In a sign of future trouble, the Kurdistan Regional Government (KRG) said it had not seen nor approved the draft. "We hope the cabinet is not approving a text with which the KRG disagrees because this would violate the constitutional rights of the Kurdistan region," the KRG said in a statement.
Presentation of the draft to parliament after the cabinet approved it on Tuesday was a big step towards meeting a key political target set by the United States. But Mohammed Abu Bakr, head of parliament's media office, said the law had to first go to the energy and oil committee. "We need seven days to get the draft on the agenda of parliament to discuss it," he said.
The oil law is intended to ensure a fair distribution of the world's third largest oil reserves, which are located mainly in the Shi'ite south and the Kurdish north of Iraq. Sunni Arabs, the backbone of the insurgency, live mainly in central provinces that have little proven oil wealth and have long feared they would miss out on any windfall.
In a sign of future trouble, the Kurdistan Regional Government (KRG) said it had not seen nor approved the draft. "We hope the cabinet is not approving a text with which the KRG disagrees because this would violate the constitutional rights of the Kurdistan region," the KRG said in a statement.
Labels: draft oil law, energy and oil committee, Iraqi parliament, KRG
Tuesday, July 03, 2007
Iraqi parliament to debate amended draft oil law
Oil
(BBC) - The Iraqi government has approved an amended draft law on how to share the country's oil wealth, officials say. Government spokesman Ali al-Dabbagh said parliament would begin debating the bill on Wednesday. There are no details about changes to the original draft, which Kurdish groups objected to.
Correspondents say distribution of oil revenues is a key concern for Sunni Arab groups, who live in areas which are mostly without oil reserves. The original draft, approved by the cabinet in February, stipulated that a state oil company would take control of oilfields away from regional governments. But Kurdish organisations said such moves were unconstitutional.
They reached agreement with the government in June that the authorities in Iraqi Kurdistan would receive 17% of all oil revenues. The United States has been pressing Iraq to pass an oil law, as part of several legislative measures to promote reconciliation among Iraq's religious and ethnic groups. Iraq's known oil reserves have been estimated at 115 billion barrels, but production has fallen since the US invasion from 3.5 million to two million.
Correspondents say distribution of oil revenues is a key concern for Sunni Arab groups, who live in areas which are mostly without oil reserves. The original draft, approved by the cabinet in February, stipulated that a state oil company would take control of oilfields away from regional governments. But Kurdish organisations said such moves were unconstitutional.
They reached agreement with the government in June that the authorities in Iraqi Kurdistan would receive 17% of all oil revenues. The United States has been pressing Iraq to pass an oil law, as part of several legislative measures to promote reconciliation among Iraq's religious and ethnic groups. Iraq's known oil reserves have been estimated at 115 billion barrels, but production has fallen since the US invasion from 3.5 million to two million.
Labels: Ali al-Dabbagh, draft oil law, Iraqi parliament
Monday, June 25, 2007
Kurdistan region to take 17 per cent of all Iraq oil revenue
Oil
(Reuters) - Kurdish officials said on Thursday they had reached agreement with the central government on equitably sharing revenues from Iraq's oilfields but that negotiations would continue on other disputed clauses. Earlier, Iraqi Oil Ministry spokesman Asim Jihad said all the areas of dispute in a landmark draft oil law had been resolved and the bill had been submitted to parliament.
The draft, crucial to regulating how wealth from Iraq's huge reserves will be shared by its sectarian and ethnic groups, was approved by the cabinet in February but faced stiff opposition from Kurds, who felt they were getting a bad deal. Most oil reserves in Iraq are in the Kurdish north and Shi'ite south.
Khalid Saleh, spokesman for the Kurdistan regional government, said agreement had been reached on Wednesday on a revenue sharing mechanism. Under the deal, the Kurdistan region will take 17 percent of all oil revenue from Iraq. The money will be deposited into a Kurdistan regional account in the central bank.
"This deal is a big victory for the political process in Iraq," Saleh told Reuters. But, he said the annexes in the draft had not yet been discussed. The Kurds say the annexes are unconstitutional because they wrest oilfields from regional governments and place them under a new state oil company.
They also cover control over discovered and undiscovered oilfields and who would have the power to negotiate contracts with international oil companies. Iraq sits on the world's third-largest oil reserves and officials have been struggling since last year to finalize the draft law, which is vital for Iraq to attract investment from foreign firms to boost its oil output and rebuild its economy.
The latest disputes broke out not long after the oil ministry in Baghdad warned regions in late April against signing contracts until the law was passed. The Kurdistan regional government has signed several agreements with foreign companies.
The draft, crucial to regulating how wealth from Iraq's huge reserves will be shared by its sectarian and ethnic groups, was approved by the cabinet in February but faced stiff opposition from Kurds, who felt they were getting a bad deal. Most oil reserves in Iraq are in the Kurdish north and Shi'ite south.
Khalid Saleh, spokesman for the Kurdistan regional government, said agreement had been reached on Wednesday on a revenue sharing mechanism. Under the deal, the Kurdistan region will take 17 percent of all oil revenue from Iraq. The money will be deposited into a Kurdistan regional account in the central bank.
"This deal is a big victory for the political process in Iraq," Saleh told Reuters. But, he said the annexes in the draft had not yet been discussed. The Kurds say the annexes are unconstitutional because they wrest oilfields from regional governments and place them under a new state oil company.
They also cover control over discovered and undiscovered oilfields and who would have the power to negotiate contracts with international oil companies. Iraq sits on the world's third-largest oil reserves and officials have been struggling since last year to finalize the draft law, which is vital for Iraq to attract investment from foreign firms to boost its oil output and rebuild its economy.
The latest disputes broke out not long after the oil ministry in Baghdad warned regions in late April against signing contracts until the law was passed. The Kurdistan regional government has signed several agreements with foreign companies.
Labels: draft oil law, Khalid Saleh, KRG
Monday, June 11, 2007
Iraqi union leaders protest oil law
Oil
(Iraq Directory) - Iraqi union leaders met with a U.S. congressman they say is their biggest friend in Washington, urging a united front against Iraq's draft oil law. Faleh Abood Umara, general secretary of the Iraq Federation of Oil Unions, and Hashmeya Muhsin Hussein, president of the Electrical Utility Workers Union, called the proposed law a theft of Iraq's oil.
"We believe this is a new invasion of our economy and especially to take over our oil fields," Umara told Rep. Dennis Kucinich, D-Ohio, in a private meeting Thursday in the congressman's inner office, which UPI was allowed to attend. Kucinich is a presidential candidate and Congress ' most vocal war opponent. The law, which is stuck in negotiations, is feared by the unions as giving foreign oil companies too much access to Iraq's oil.
Umara was one of 10 union leaders for whom arrest warrants were issued earlier this week as Iraqi Prime Minister Nouri al-Maliki responded to a strike of oil workers, who are demanding improved working conditions and a seat at the oil law negotiating table. The unions began a strike Monday over the law, as well as working conditions, but the work stoppage has been temporarily halted as negotiations continue in Basra.
"Therefore we believe this is a very aggressive act to take over our resources," Umara said. "The oil law, in its current status, does not serve the Iraqi people." Umara said foreign companies were welcome to Iraq's oil sector, but warned it should be limited. The unionists urged the United States, via Kucinich, to oppose the law. President Bush and the Democratic-led Congress have called on the Iraq parliament to pass the law soon, both in official speeches and as part of legislation funding the war through September.
"Mr. Kucinich, we see you as a friend of the Iraqi people and that is the general belief over there," Umara said. "We would hope that your government could put pressure on our government to not pass the oil law." Kucinich replied, "Unfortunately our government is putting pressure on your government to pass it."
"We believe this is a new invasion of our economy and especially to take over our oil fields," Umara told Rep. Dennis Kucinich, D-Ohio, in a private meeting Thursday in the congressman's inner office, which UPI was allowed to attend. Kucinich is a presidential candidate and Congress ' most vocal war opponent. The law, which is stuck in negotiations, is feared by the unions as giving foreign oil companies too much access to Iraq's oil.
Umara was one of 10 union leaders for whom arrest warrants were issued earlier this week as Iraqi Prime Minister Nouri al-Maliki responded to a strike of oil workers, who are demanding improved working conditions and a seat at the oil law negotiating table. The unions began a strike Monday over the law, as well as working conditions, but the work stoppage has been temporarily halted as negotiations continue in Basra.
"Therefore we believe this is a very aggressive act to take over our resources," Umara said. "The oil law, in its current status, does not serve the Iraqi people." Umara said foreign companies were welcome to Iraq's oil sector, but warned it should be limited. The unionists urged the United States, via Kucinich, to oppose the law. President Bush and the Democratic-led Congress have called on the Iraq parliament to pass the law soon, both in official speeches and as part of legislation funding the war through September.
"Mr. Kucinich, we see you as a friend of the Iraqi people and that is the general belief over there," Umara said. "We would hope that your government could put pressure on our government to not pass the oil law." Kucinich replied, "Unfortunately our government is putting pressure on your government to pass it."
Labels: Dennis Kucinich, draft oil law, Faleh Abood Umara, Iraq Federation of Oil Unions, Iraq Oil
