“These acts would expose the relevant Ministry to legal accountability by the parliament, in which might cancel the licensing contracts … the government is committed to such long-term contracts without obtaining the parliament’s acceptance in the absence of the Gas and Oil’s federation law, according to Law (97) in 1967.”
Al Iraqiya emphasized that the government has been breaching the law for Four years, which is an “unjustifiable case”. Adding that, “what is experienced by all the blocks are personal politicised decisions … such decisions are not economically independent-decision adopting the results of business studies and ensuring the best returns for the Iraqi people, as approved by the Iraqi Constitution.”
Iraq had signed oil contracts with international companies earlier this year for raising the country’s production to 12 million bpd within 10 years. However, the investment firms are still worried about the worsening security situation in the country, which might constitute an obstacle in achieving the projects on time. Another issue that might face investment companies is the crisis between Baghdad and Kurdistan Region regarding the recent contracts signed by KRG with the foreign companies to extract oil from Kurdistan’s oil fields.