Erbil, Baghdad agree to form committees to finalize draft hydrocarbons bill
Managing oil and gas has been a contentious issue between Erbil and Baghdad for over a decade.
ERBIL (Kurdistan 24) – The Kurdistan Region’s authorities on Saturday agreed with their Iraqi counterparts to set up committees in order to prepare the final draft of the oil and gas bill, according to a statement.
A Kurdistan Regional Government (KRG) delegation, consisting of the acting minister of energy among other top officials, visited Baghdad to meet with the Iraqi Minister of Oil and other energy officials regarding the under-discussion oil and gas bill.
The officials agreed to set up a number of committees to work with various government ministries and oil and gas-producing governorates to finalize the bill, according to a statement from Umed Sabah, president of the KRG Diwan.
Sabah described the bill as the “main pillar for investing in oil and gas” based on the best international practices that would safeguard the interests of all the Iraqi people.
In the absence of an oil and gas law, Iraq relies on the 1970s Ba’athist-era legislation to regulate its oil and gas sector.
The KRG officials have called on the Iraqi government on several occasions to draft the bill in order for the parliament to enact the legislation.
Managing oil and gas has been a contentious issue between Erbil and Baghdad for over a decade.
Producing an average of 3.5 million barrels of oil per day, more than 90 percent of Iraq's revenues come from oil sales.
Prior to the stoppage of its oil sale on March 25 at the request of Iraqi authorities, the Kurdistan Region used to export 450,000 barrels of oil on a daily basis.
Beginning in June, the Region transfers 50,000-60,000 barrels of oil to the Iraqi Ministry of Oil as part of a new arrangement between the two governments in order to market the Kurdish oil through the state marketing company, known as SOMO.
