Overview of Iraq’s Oil and Gas Legislative Framework
In the past two years, the current Iraqi government’s efforts to establish a legal framework for oil and gas projects have been stalled, as noted by Adnan Jabri, the acting head of the Oil and Gas Commission in Parliament. He emphasized that the existing law is urgently needed to address the concerns of those involved in natural resource management under what has been referred to as the "Constitutional Framework".
The discussion on oil and gas legislation was a focal point of one of the panels during the second day of the Ministry of Oil conference, held today, Wednesday, January 29, 2025, in Baghdad.
Adnan Jabri asserted, "The proposals surrounding the oil and gas law have faced numerous challenges, particularly regarding contentious constitutional provisions. There needs to be an environment conducive for all stakeholders, including the Kurdistan Region, to make advancements in this sector. Furthermore, the authority over these resources must be re-evaluated against the political context and related decision-making processes.”
According to the government’s agenda, the oil and gas legislation was slated for parliamentary vote as early as November 27, 2022, with the expectation that it would pave the way for a comprehensive legal framework.
Jabri pointed out that there are provisions within the constitution allowing for the establishment of a consolidated federal framework across regions.
Based on Article 112, the oversight of oil production is to be shared in coordination with regional and provincial governments, which is meant to be structured via dedicated legislation that aligns with the objectives of the oil and gas law.
He acknowledged a "significant crisis" between the Kurdistan Region and the federal government regarding oil management, alongside another issue involving producers within the provinces and their relationship with the central government.
Jabri noted, "All governments have a role to play in the management of oil resources, as stipulated in existing legislation that has historically been neglected."
To date, two drafts of the oil and gas legislation have been developed, one in 2007 and another in 2011. However, neither was approved due to ongoing political disagreements, particularly between Erbil and Baghdad.
Sabah Subhi, a member of the Oil and Gas Committee in Parliament, highlighted that past legislation efforts have faced obstacles tied to the Ministry of Oil’s capabilities and its alignment with Iraq’s federal structure, which is intended to be based on genuine partnerships.
He further remarked, "Several existing laws concerning the oil sector are either outdated or inadequately integrated with the current operational standards, which do not align with the prevailing management practices."
In conclusion, the need for a well-defined legal framework for Iraq’s oil and gas sector remains critical, as it will not only facilitate partnerships but also enhance the management of the country’s valuable resources amidst the existing political landscape.