New Iraqi Oil Law Delayed

According to a report from Bloomberg, the chairman of the Iraqi parliament’s Oil and Energy Committee said in London on Tuesday that Iraq will be unable to pass its oil and revenue-sharing laws by this summer because of ongoing political disagreements.

Passage of the law by June or July is “unfeasible,” Adnan Al-Janabi said at a conference organized by the London-based Centre for Global Energy Studies, adding that he hopes the law will be passed by the end of the year.

Still, Iraq is making progress with some of its energy disputes, Al-Janabi said. The Kurdistan region in the north is exporting a combined 100,000 barrels a day of crude and condensate, following an agreement with the central government on payments to foreign companies in Kurdistan, and the central government’s 2011 budget provides for the payment of 200,000 barrels a day, he said.

The Oil and Energy Committee has begun consultations on how to make contracts signed between the Kurdish authorities and foreign companies compatible with national laws, Al-Janabi said. That process will require co-ordination between the committee, the Kurds and the Ministry of Oil.

Al-Janabi said it is “not reasonable or rational” for Iraq to increase production to 12 million barrels a day, one of the targets set by the government. Iraq currently produces about 2.6 million barrels of oil per day.

(Source: Bloomberg)

2 Responses to New Iraqi Oil Law Delayed

  1. Re da Caste April 6, 2011 at 1:25 am #

    I’m more and more start wondering if the oil companies in Kurdistan will ever get paid for their export. Politics in Iraq seems to be on a kidengarten level and politicians are more interested on their own pocket than on the well being of the people and the country.
    Tragic !

  2. sheytanelkebir April 20, 2011 at 2:17 pm #

    Re Da Caste. How does not paying the Foreign Oil Companies in Kurdistan affect the well being of the people of Iraq?

    Surely you mean the well being of the shareholders of those oil companies! I can say with certainty that the well being of the companies that invested in KRG with extremely lopsided deals, deserve everything they get, for they got way too greedy for their own good.