Iraq: Details End the Honeymoon in Oil Law Negotiations

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[size=52]Iraq: Details End the Honeymoon in Oil Law Negotiations[/size]

[size=45]Contrary to optimism for a smooth legislation of the oil and gas law, the political consensus on it will soon collide with technical obstacles, the most complex of which is resolving the dispute over the shares of the oil-producing cities and the management of the joint fields.[/size]
[size=45]It is assumed that the government of Muhammad Shia al-Sudani will abide by the enactment of the law, based on a political agreement of the “State Administration” coalition. However, deputies and government officials told Asharq Al-Awsat that “technical details” may threaten or delay the adoption of the law.[/size]
[size=45]Two days ago, the "State Administration" coalition urged the government committee to complete the technical discussions between the oil ministries in Baghdad and Erbil, and to send the draft to parliament.[/size]
[size=45]According to Iraqi deputies, the law includes more than 40 articles, the debate about almost half of which has been resolved, and what remains will be difficult for the political blocs due to the political and technical intersection.[/size]
[size=45]The technical debate on the law was supposed to end last June, but it is clear that it will be delayed for a longer period, and some deputies say it may extend to the end of this year.[/size]
[size=45]The new law is likely to give the state company, SOMO, full control over oil imports. Initially, the political blocs did not express any objection to this, but they differed on the details.[/size]
[size=45]The dispute arose between the oil-producing cities and those that do not include fields. As the first negotiated to obtain exceptions at the expense of the center, but the other cities insisted that Baghdad be the only party in managing the oil file.[/size]
[size=45]Representatives from the coordination framework said that the differences over the law will be resolved soon, because the negotiations are confined to technical committees that are personally supervised by the prime minister.[/size]
[size=45]According to a member of the government committee, the new law will be based on a central administrative philosophy, which states that the mission of the oil cities is production only, while the center undertakes marketing and distribution of imports.[/size]
[size=45]However, a leader in the Democratic Party says that the Kurds do not oppose the legislation of the law, but they fear violating the constitution, which provides for the participatory management of oil between the center and the region.[/size]
[size=45]For about a decade and a half, successive Iraqi governments have managed oil with political consensus, without a legal basis, and while oil policy changes with every political fluctuation, the energy sector has turned into a field for political liquidation.[/size]
[size=45]The first draft of the law was presented in 2008, but parliament has not succeeded in voting on it until today due to disagreements over the interpretation of the articles of the constitution related to oil, especially the powers granted to the Kurdistan region.[/size]
[size=45]Because of the absence of the law, oil production and export from Erbil was disrupted for many years, while the legal framework for the relationship with foreign oil companies was disturbed, some of which were forced to withdraw, or they began to deal directly with the Baghdad government.[/size]
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