An Oil and Gas Revolution: Iraq’s New Legislation and its Implications, 28 SEPT

 An Oil and Gas Revolution: Iraq’s New Legislation and its Implications, 27 SEPT

After over a decade of lengthy discussions and multiple delays, Iraq is on the brink of executing an oil and gas law that could grant international corporations a piece of the country’s oil production. This significant move is expected to materialize after the municipal elections in December, marking a potential turning point for Iraq’s oil and gas sector.

Underlying Issues and Controversies

However, the road towards this monumental change is not without its bumps. Unresolved issues persist between the federal government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil. A crucial point of disagreement is the proposed leadership for the planned federal oil and gas council. The proposal suggests the Oil Minister of Iraq should chair this council, but the Kurdistan region insists that its own Oil Minister should be part of the council’s leadership.

The new law proposes an equitable distribution of profits from oil exports among Iraq’s governorates, based on their gross domestic product (GDP). This approach is designed to ensure a fair and equal distribution of the country’s oil wealth across its various regions. Moreover, this law would empower each governorate to independently grant oil concessions and sign contracts for exploration and production.

National Benefits and International Implications

With this legislation, Iraq hopes to optimize its oil resources to attract foreign investments and stimulate its oil and gas sector. The move signifies a major policy shift, potentially opening up the country’s vast oil reserves to international companies after years of state control.

Despite the promising prospects, the law is expected to face resistance from various quarters. Opposition to the law may come from those who perceive it as a threat to national sovereignty or fear that it could exacerbate regional disparities. Nonetheless, the potential benefits of this law – both for Iraq and for international corporations – make it a development to watch in the coming months.

https://bnn.network/world/iraq/an-oil-and-gas-revolution-iraqs-new-legislation-and-its-implications/