Iraqi officials reached a tentative agreement on the oil law

Iraq is in great need for foreign investment to revive its shattered economy, which relies heavily on revenues from oil exports, especially that the country has the third largest oil reserves in the world.

Sources close to the negotiations said that Prime Minister Nuri al-Maliki, “agreed on” the draft law which is awaiting the political approval and the adoption of the Cabinet.
The source added that the law calls for the formation of a national council of oil headed either by the Prime Minister or the Deputy Prime Minister and has the right to reject deals of oilfields.

A source said that “regions will negotiate within the framework of specific standards and models of investment determined by the Federal Council of oil and gas … In the presence of a representative of the Council”.

He added, “If a contract is rejected but the region insisted on it, a body of independents experts will be appointed for arbitration”.

The sources added that the Minister of Oil, the Central Bank Governor, representatives from each region and experts in the fields of oil, finance and the economy will be members in the Council.

eDinar