Iraq Kurdish oil deals must comply with new law
Sunday, 8 July 2007
DUBAI, July 7 (AFP): Iraq's oil minister said yesterday that oil contracts concluded by the Kurdish regional government must be amended to conform with a controversial new draft oil law approved by the Baghdad cabinet.
"There is a clear provision in the draft law stating that the contracts concluded either by the former regime (of Saddam Hussein) or in Kurdistan must be reviewed and amended in keeping with the new oil and gas law," Hussein Shahristani told the Dubai-based Al-Arabiya news channel.
His remarks appeared to represent a climbdown from a warning he issued in May that any oil contracts signed by northern Iraq's Kurdish regional government before the new law is passed would be considered invalid.
They came amid a chorus of Sunni Arab, Kurdish and Shiite opposition to the draft oil law backed by Washington, an amended version of which was approved by the Iraqi cabinet Tuesday and sent to parliament.
The proposed legislation has sparked a heated debate among Iraq's warring communities over provisions opening the oil sector to foreign investors and allowing regional authorities to negotiate contracts.
The Kurds have demanded that the law accommodate contracts they have already signed with foreign companies to exploit oil in northern Iraq.
Iraq has proven reserves of some 115 billion barrels, but since the US- led invasion which toppled Saddam Hussein in 2003 production has tumbled from 3.5 million barrels per day to around two million.
"There is a clear provision in the draft law stating that the contracts concluded either by the former regime (of Saddam Hussein) or in Kurdistan must be reviewed and amended in keeping with the new oil and gas law," Hussein Shahristani told the Dubai-based Al-Arabiya news channel.
His remarks appeared to represent a climbdown from a warning he issued in May that any oil contracts signed by northern Iraq's Kurdish regional government before the new law is passed would be considered invalid.
They came amid a chorus of Sunni Arab, Kurdish and Shiite opposition to the draft oil law backed by Washington, an amended version of which was approved by the Iraqi cabinet Tuesday and sent to parliament.
The proposed legislation has sparked a heated debate among Iraq's warring communities over provisions opening the oil sector to foreign investors and allowing regional authorities to negotiate contracts.
The Kurds have demanded that the law accommodate contracts they have already signed with foreign companies to exploit oil in northern Iraq.
Iraq has proven reserves of some 115 billion barrels, but since the US- led invasion which toppled Saddam Hussein in 2003 production has tumbled from 3.5 million barrels per day to around two million.