Maliki, Barzani “Close to Solving Oil Dispute”

By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

MPs from the ruling State of Law Coalition and the Kurdistan Alliance confirmed the presence of positive vibes between the federal government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil regarding the possibility of passing the Oil and Gas Law, which governs the management of oil wealth in the country.

The law is supposed to be passed during the current legislative session, which ends in early 2014. However, the MPs preferred to maintain discretion regarding information on the final draft of the law.

A high-ranking source in the office of Iraqi Prime Minister Nouri al-Maliki told Al-Monitor that “Prime Minister Maliki and KRG President Massoud Barzani discussed during the latter’s latest visit to Baghdad an amended draft of the Oil and Gas Law and agreed on showing it to their partners, so that it can soon be passed in the Iraqi parliament, before the current legislative session ends in early 2014.”

However, the federal government and the semi-autonomous KRG disagree on oil and its imports in the northern provinces. While Baghdad demands that the agreements with foreign and local companies on the drilling operations happen with its knowledge and that the region send the export revenues to the federal government, the Kurdistan region wants the federal government to pay the dues of oil companies working for it, before requiring oil revenues to be sent to Baghdad.

The Oil and Gas Draft Law has undergone several amendments since 2011, but it has not received the needed consensus yet.

2 Responses to Maliki, Barzani “Close to Solving Oil Dispute”

  1. Lorenzo July 19, 2013 at 11:17 pm #

    The Oil and Gas Law together with a Federal State in Iraq is the row out of poverty and tribulations. Think that today with 50C temperatures parts of Iraq do not have electricity and those parts are very rich in oil!

    What a shame and incompetence at government level! People are dying due to the existing heat both old and young people. This is killing as much people as terrorism

  2. wayne July 21, 2013 at 6:20 am #

    close the deal and get the money on the market. Then they will have plenty of companies to get all of the things done they need right now, like water wells and electricity to all.. Just my opinion…