Expectations that the oil and gas law will be passed after the local elections
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Baghdad: Haider Al-Jaber
The Oil and Gas Law can be called “the dean of deferred laws” in Iraq, as 15 years after it was presented in the House of Representatives, it continues to be postponed for political reasons that coincided with the crises that the political process was periodically exposed to, while the law, according to its draft, allows for production sharing agreements that It guarantees a profit to foreign oil companies, and the federal government distributes remaining oil revenues throughout the country on a per capita basis.
A member of the Parliamentary Oil and Gas Committee, Ali Al-Mashkoor, told Al-Sabah: The oil and gas law is the subject of disagreement between the federal government and the region, as both of them look at it from their own angles, noting that there are 11 controversial points regarding its articles that were drawn up by the federal government, and they need time to be resolved because they are... In the spirit of the law and interfere with its name.
He pointed out that one of the controversial points, according to the law, is the formation of the Oil and Gas Law Authority, which includes representatives of the producing governorates as well as the federal government and the region, and whose president is the Federal Minister of Oil, while the region wants the region’s Oil Minister to be his equal, expecting it to be passed after the scheduled local elections. Mid of next December.
Mashkoor explained that there are no two states in Iraq, but rather there is a federal government and a region, calling for the centralization of the law to take into account the rights of the provinces and the region, expressing his committee’s readiness to approve the law at any time.
It is noteworthy that the draft law allows production sharing agreements that guarantee a profit for foreign oil companies, while the central government distributes the remaining oil revenues throughout the country on a per capita basis, and allows governorates freedom to award exploration and production contracts.
For his part, parliamentary economics member Kazem Al-Fayyad expected, in his speech to “Al-Sabah”, that the passage of the law would contribute to a qualitative shift in the Iraqi economy, and would give better control to the federal government, and a more equitable distribution among the governorates, noting that most of the laws that are approved in the House of Representatives are mainly based on On how to deal with it and how to apply it.
He explained that if the oil and gas law is applied correctly and according to what is stated in its text, the citizen will benefit from it, as oil revenues will be distributed fairly and equally, pointing out that the producing governorates that bear the consequences of oil extraction will benefit, as will the federal government, which will have greater freedom in contracting with companies. Companies will reduce restrictions, and the extraction and export file will be more controlled.
Al-Fayad stressed that the law is excellent, calling for its implementation without political pressure or external or internal interference, with the public interest prevailing.
Edited by: Adhraa Juma
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