"WHY WAS THE OIL & GAS LAW NOT LEGISLATED IN IRAQ PREVIOUSLY?", 6 AUGUST

 Why was the oil and gas law not legislated in Iraq previously?.. Political differences 18 years ago

2023-08-05 | 03:42

Why was the oil and gas law not legislated in Iraq previously.. Political differences 18 years agoPolitical disagreements over the issue of managing the oil fields of the Kurdistan region of Iraq prevented a vote on the oil and gas law, despite its economic importance, which has been pending legislation in parliament since 2005, which stipulates that the responsibility for managing the oil fields in the country should be entrusted With a national oil company, supervised by Baghdad.

The law was introduced many times during the previous parliamentary sessions and was not included in the parliamentary laws and legislations.

The economist saidNabil Al-MarsoumiIn a post that followedAlsumaria NewsAlthough two versions of the draft oil and gas law were issued, one in 2007 and the other in 2011, no oil and gas law was legislated inIraqBecause of the great difference between the political forces on many issues, including:

First: The dispute over giving the region licensing authority in the field of exploration and development of discovered undeveloped fields. This is contrary to the jurisdiction of the National Oil Company, which leads to a conflict between the jurisdiction of the region and the jurisdiction of the National Oil CompanyOil Ministry. This disparity would prevent the existence of a unified system of contracts in the regionsIraqThe different that giving the regions the right to conclude licensing contracts prevents the implementation of a federal oil and gas policy. There will be two oil policies, one in the center and the other in the region.

Second: There is a major disagreement in the interpretation of Article (112/First) of the Constitution, which requires that the central authority manage the oil and gas extracted from the current fields in coordination with the regions. Exploration patches and this understanding leads to the interpretation of the regions that they will take over the management of oil and gas.

Third: Giving the authority to license oil operations for exploration and production contracts in the center and the regions after presenting the initial contract toFederal Council. This leads to duplicity in the oil policy and affects the economic policy of Iraq due to the potential difference of visions between the Federal Council andOil Ministry.

Fourth: Granting an important aspect of the negotiating role of the Federal Oil and Gas Council and its tasks to a regionKurdistanAnd the oil-producing cities that are not organized in a region may weaken the negotiating role of Iraq and exacerbate the risks surrounding the implementation of a unified strategy in the country.

Fifth: When a unified central policy is lost, competition and disagreement will prevail between the National Oil Company and between the regions and governorates, which will lead to disagreement instead of cooperation that guarantees the unity of the people and the country. While the constitution granted the task of managing oil and gas wealth to the federal government in partnership with the regions and governorates.

On February 15 of last year 2022, the Federal Supreme Court issued a ruling that the oil and gas law of the regional government of 2007, which regulates the oil industry and its extraction in the region, was unconstitutional. This ruling came after the regional government concluded contracts with foreign oil companies. Provincial government refusedKurdistanFederal Court decision, giving up control over oil exports.

The oil and gas law legislation – which has been suspended since 2005 – would regulate and support the oil sector, by regulating investments in the oil and mineral aspects, especially with regard to managing the part of the region.Kurdistan.

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