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KurdistanObserver.com
Iraqi MP: Kurdistan Government Oil Law Didn't Help
September 7, 2007
BAGHDAD - A top Iraqi parliamentarian said the Iraqi Kurdistan approval of a
regional oil law set back the debate over a federal law.
Abdul-Hadi al-Hasani, deputy chair of the Parliament's Energy Committee, said
the deals the Kurdistan Regional Government (KRG) signed with oil firms could be
overturned by the federal government.
Iraq's federal oil law has been held up by disputes over the extent of federal
control over the oil sector and what role the private sector would play.
The Kurds, in the relatively peaceful Kurdistan region in the north, have been
urging movement as they try to capitalize on four plus years of economic
development. They have signed a handful of oil deals with smaller, private
firms, which raised ire in Baghdad, sparking threats from the Oil Ministry they
wouldn't be honored.
Last month the KRG grew weary of waiting for Baghdad and approved its own
version of a regional oil law, saying it would be in line with a version of the
federal law the KRG agreed to in February.
"It did not help as much as hindrance," Hasani said on the sidelines of the Iraq
Oil, Gas, Petrochemical and Electricity Summit organized by the London-based
Iraq Development Program. "We need one constitution, one law over everybody. It
could wait and then we could see and then they could adopt the law which
everybody had agreed on."
Hasani claims the federal government has the right to void the KRG contracts,
though that would likely make matters worse in terms of the investment scene in
Iraq.
Sami al-Askari, parliamentarian and top adviser to the prime minister, said a
federal oil and gas council that the law forms would decide whether to scrap the
KRG deals.
Both parliamentarians said the private firms that signed deals with the KRG
should not be blocked from winning contracts for the rest of Iraq.
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