Two decades of postponement and disagreement... What is delaying the approval of the oil and gas law

POSTED ON[You must be registered and logged in to see this link.] BY [You must be registered and logged in to see this link.]

[size=52]Two decades of postponement and disagreement... What is delaying the approval of the oil and gas law?[/size]

[size=45]At the end of last August, after 18 years, Iraq announced the formation of a committee to develop a draft of the oil and gas law and present it to the government and the House of Representatives while observers wait for the law, which has been awaited for more than a decade, to be discussed. However, it is uncertain whether the law will be passed or not. .[/size]
[size=45]Despite the importance of the oil and gas law at this stage that Iraq is going through, political differences and blocs within Parliament may work to delay it, unless consensus is reached before the voting process, as the law is of great importance to Baghdad and Erbil, given that oil represents the main revenue component in Iraqi budget.[/size]
[size=45]Since the first session of the Iraqi Council of Representatives, in 2005, the draft oil and gas law has been stuck in drawers, as disagreements prevent its approval in its final form.[/size]
[size=45]Delays[/size]
[size=45]The Oil, Gas and Natural Resources Committee has identified the reasons for the delay in approving the oil and gas law under the dome of Parliament, and committee member Ali Al-Mashkour said, in a press statement followed by (Al-Mada), that “the reasons behind the delay in approving the law in the House of Representatives are not only technical controversial points, but there are Administrative points do not exceed seven points,” pointing out that “Prime Minister Muhammad Shiaa al-Sudani and the heads of the political blocs are continuing to negotiate to try to pass the law with the least possible disagreements, given that there is no law that serves everyone equally, and this is not possible as a result of the disparity in existing shares.”[/size]
[size=45]The representative added, “There is a dispute over the management of the fields in the Kurdistan region and who will manage these fields, whether the federal government or the Erbil government, but as a law, it must be implemented on the various components within the country, whether in the region or in Basra, given that the latter is no different.” Regarding Kurdistan, we are all under one umbrella, which is Iraq. He noted that “the Kurdistan Regional Government is trying to continue the same old policy that was tiring it in managing its fields, which lacked a central presence.”[/size]
[size=45]Sovereign issue[/size]
[size=45]Political and economic affairs researcher Nabil Al-Ali explained to (Al-Mada) that “the oil law aims to regulate the relationship and operations of oil and gas extraction in Iraq, as well as the financial relationship with regard to the dealings of regions and governorates not affiliated with the central government.”[/size]
[size=45]Al-Ali stated, “The oil and gas law is the process of establishing an equation to distribute wealth, especially between the federal part of Iraq and the region, and its importance began to expand when export operations expanded in the Kurdistan region.”[/size]
[size=45]Al-Ali added, “The dispute over it has extended almost from the year 2008 to this day. Since the beginning of the emergence of oil and the beginning of its extraction from the Kurdistan region until this moment, the disputes have been related to greed for money and the acquisition of natural wealth, including oil and gas, and there is a constitutional dispute over this issue, and this dispute By interpreting the constitutional provisions related to natural resources, while there are those who claim to be the Constitution.”Noting that, “resources must be managed in a central way, and this is a sovereign issue. There is another opinion according to the constitution, which is that oil rights and wealth rights are specifically for the regions and the central government has no authority over them. Recently, the federal and central governments won a lawsuit filed in the International Arbitration Court in France.” As a result of this gain, it was able to force the Kurdistan region in particular to stop exporting oil completely and to force international parties, including Turkey, to which oil extends through its territory, not to import oil except with the approval of the central government, and today the central government has gained a trump card, as the government’s political agreement stipulated However, the oil and gas law must be legislated within a period not exceeding 3 months, and now we are approximately 10 months away and perhaps a little more than the life of the government, and the oil and gas law has not been achieved, of course, for reasons some of which are technical and some of which are political.”[/size]
[size=45]Approval[/size]
[size=45]The researcher continued via Al-Mada, “More than 95 percent of the country’s revenues depend on oil, while more than 60 percent and perhaps 70 percent of the gross domestic product depends on oil to a large extent, while the gross domestic product for the agricultural sector will not represent more than 3% and other non-oil industrial sectors do not exceed 1%. It is true that the commercial sector has a small percentage contribution, but it is also linked to the presence of oil and its money, and its absence makes you feel that the country is bankrupt.” Pointing out, “Iraq must develop its capabilities in the field of developing the agricultural and non-oil industrial sector or even the oil industrial sector, and this result contributes to the process of strengthening the economy again.”[/size]
[size=45]Solution[/size]
[size=45]Legal researcher Ali Al-Tamimi said in his interview with (Al-Mada), “The draft federal oil and gas law consists of 53 articles, and requires the establishment of the Federal Oil Council, which is headed by the Prime Minister and the membership of the Minister of Oil and Finance, the Governor of the Central Bank, a representative of the producing provinces and regions, and oil experts.” It takes into account the representation of the components of the Iraqi people, and the Council is responsible for setting petroleum policies, issuing instructions for implementing contracts, approving exploration, development and production, approving concluded contracts, and other powers stipulated in the project.[/size]
[size=45]Al-Tamimi explains, “The contracts shall be signed by the Federal Ministry of Oil, provided that they are approved by the Federal Oil Council within 3 months, and are referred to the Council, otherwise they will be considered invalid, as the draft stipulates the necessity of reviewing the concluded contracts, and amending them in accordance with this law, and the law does not specify the type of these contracts.” Contracts would have been better if they were only service contracts and not participation.”[/size]
[size=45]He stresses, “The law needs to impose on contracting companies to employ Iraqis exclusively, as self-producing countries do, and this is important.” Noting, “As for the issue of contracts prior to the enactment of the law, it must be explicitly stipulated, and the problem with contracting companies contrary to the constitution, and contrary to the decisions of the Federal Court, must be resolved in accordance with the principle of joint management of the two parties, that is, the federal government and the region, with the exclusive right of action for the federal government in accordance with Article 135 of the Civil Code, which says Whoever disposes of someone else’s property, his disposal is subject to the owner’s approval.”[/size]
[size=45]Future foundations[/size]
[size=45]Al-Tamimi stated, “This law needs to explicitly stipulate the penalties that affect parties that conclude contracts in violation of this law, and also specify the regulatory authorities that have the right to review these contracts.” Pointing out that “the law needs to explicitly stipulate the rest of the petroleum products, not just oil and gas, such as gasoline, asphalt, gasoline, etc., and the draft law needs to include the decisions of the Federal Court in this law, especially since these decisions are final and binding on all authorities in accordance with Article 94 of the Constitution.” . Stressing that “this project is very important and may not be the beginning for laying the foundations for the future and preventing the problem from occurring between the center and the region, and it needs to be presented to the media and specialists before it is enacted.”[/size]
[size=45]The researcher continued, “This law must be expanded upon in detail so that it does not open the door to diligence when applied, as it is one of the most important laws stipulated in the Constitution in Article 112 of it.”[/size]
[size=45]Al-Tamimi concluded, “The ministerial curriculum presented by the Prime Minister is very important, which stipulates the necessity of legislating this law.”[/size]
[size=45]It is noteworthy that the Oil and Gas Law in Iraq, which has been awaiting legislation in Parliament since 2005, stipulates that the responsibility for managing the country’s oil fields must be entrusted to a national oil company, and supervised by a federal council specialized in this subject.[/size]
[size=45][You must be registered and logged in to see this link.]