"The Iraq federal oil and gas law is, perhaps, one of the most eagerly awaited and contentious pieces of legislation in the oil industry, worldwide," writes Keith Myers of Richmond Energy Partners in a new article published in Petroleum Economist.
Myers recently facilitated a workshop for Iraqi parliamentarians, hosted by RWI and Arab Region Parliamentarians Against Corruption (ARPAC) in Beirut. In his article, “Breaking Iraq's oil-law stalemate," Myers digs deep into the politics that have hindered the passage of this legislation for more than four years. Tensions within the national coalition government, which includes Shia and Kurdish representatives, suspicions among the Arab Sunni blocs, and the relative autonomy of the Kurdish region—which has prompted other regional governates to seek similar status—have all resulted in a lack of unity or consensus in parliament.
"One of the few things all Iraqis agree on," Myers writes, "is the mistrust between the political factions."
Further complicating the debate is the lack of either clear policies to guide the legislative process or specific constitutional language about what public ownership of Iraq's sizeable oil reserves really means—an endowment that all Iraqis share in alike under jointly agreed governance, or a divided nation, where each region separately governs the oil resources within its borders.
Myers presented an independent analysis of the draft law at RWI's workshop, speaking to Iraqi parliamentarians from all political and ethnic blocs. He identified 42 important points that would benefit from clarification. As a result of these uncertainties, Iraq has been unable to agree upon a uniform petroleum policy that would regulate crucial questions like production and depletion rates, exploration licensing and regulatory authority.
The full article is available for download from RWI.
