After having been kept confidential for many months, a few days ago the Iraqi government disclosed the draft of the Iraqi Oil and Gas Law which is controversial because of its importance at the national and
According to the draft the oil and gas revenues will be distributed to all people in accordance with the population density of each region and not only to producing provinces, but give the regions the right to negotiate and conclude contracts for oil and gas, the final decision and the right of ratification remaining in the hands of the central government in order to maintain the unity of Iraq. Thus the draft law stipulates that Iraq's oil resources remain in the hands of the National Oil and Gas Company.
The draft also stipulates the formation of a "Federal Council for Oil and Gas", and to establish a fund for oil resources, as well as the establishment of a Future Fund, which is to be a special fund for future generations.
According to the draft law, the Federal Oil and Gas Council will, using what is known as "the independent advisers", be responsible for developing policies and plans of federal oil exploration and development of fields as well as auditing. It will also make decisions on the contracts for exploration and production, and establish and modify model exploration and production contracts and award licenses for operations in the oil sector. The Ministry of Oil will retain the power to propose policy, laws and federal oil plans, and prepare directives, regulations and instructions to implement plans for the federal oil pipelines.
To read the full text of the draft law (Arabic), please click here.
To read the full text of the draft law (English), please click here.