Iraq’s Oil & Gas Laws
The Oil & Gas Law has been said by many to be the most important law in Iraq, other than the Iraqi constitution itself, and those people would be correct, it is!
We have been looking for signs that would tell us when this law would be introduced into parliament for a final vote. I have found out by one of my oil company contacts in Kuwait City that the oil companies are re-signing old contracts under the new contract terms and provisions.
So is it done and we just haven’t heard about it? The answer is NO, it’s not done, because we continue to read articles that tell us there are still areas that need worked out. But all these areas are with issues outside the main Hydrocarbon Law (HCL) itself. These are areas that need completed that are attached somehow to the HCL (Oil & Gas Law) itself.
Read More Link On Right
One of these areas is how the oil contractors get paid and one of the biggest issues with the Kurds as we found out when Parliament passed the 2013 Fiscal Budget in March without the Kurds involvement.
As the Barzani pointed out, there was no clear definition of who would pay these oil contractors and how much each party would pay.
Yes they received their 17% but then the Federal Government put most of the contractor payments back on the Kurds.
Let’s look a few months back when we read that they were decided to pass these issues separately by making them laws within themselves, so the main body of the law of theHCL would be easier to pass.
Thus the Oil Contractors Law was established and the first one that they wanted to resolve and now we are reading where large amounts of funds have been sent to the provinces just for this purpose.
To pay the oil contractors but no one knows how much goes to who or who to pay. Nice clue though that they are implementing this part under the Oil & Gas Laws!
Does this mean they passed the Oil Contractors Law? I don’t think so but it was one of the 7 point agreements that Maliki and Barzani signed back in April and from there they formed their 5 member committees to work out the details.
So it sure looks like the agreements were good enough and we should see it move through parliament later. A very interesting pattern has evolved IMO.
The same way that Article 140 was finally implemented because we know with 100% confirmation that these 140 funds have been going to their beneficiaries.
Just another sign that things are getting done that have never been done before and why I believe we are inching ever so closer to what we/they want and need!
Moving forward, about 4:00 am this morning I ran across another very telling article connected to their much needed Oil & Gas Law.
Title: Oil end the parliamentary discussion of the law of the establishment of the national oil company and submit to the Presidency of the Council of Representatives for a vote
I like this article a lot and here’s why:
The Parliament Commission on Oil & Energy ended their discussion of the draft law on the establishment of the National Oil Company and has submitted it to the President of the Council of Representatives to be included in the agenda of the House of Representatives for a vote during the coming session.
A quote: the adoption of this law will help the enactment of the oil and gas being linkedto and directly by
The enactment of the oil & gas means that it will be enacted once these other laws are implemented that are link to and directly by the main law.
Quote: He pointed out that oil and gas sectors in the country in dire need of these laws
“these laws” is why I titled my blog today the Iraq Oil & Gas Laws because we are watching laws being implemented and then the main Law itself will be enacted.
Article Link: Iraq's Oil & Gas Laws LINK
Folks, the reason the Oil & Gas Law has never been approved comes down to two things:
The United States drafted the original law and because it gave all the production to foreign oil companies, majority being the US oil companies and that was not acceptable by many Iraqis.
These same Iraqi’s wanted Iraq to share in the production so they have established the National Oil Company and why I believe this is the last of what’s needed to enact the main law itself.
Don’t look for it to be voted on, I believe it has already proved that they just need to agree in writing and things get done, and passed through parliament later.
If this is the case then what is Thursday’s National Meeting and Honor Document going to do?
Not sure but it sure makes you wonder doesn’t it? We are getting so very close!
Have a good one, Stryker