Economic Insights – Baghdad
The Parliamentary Oil and Gas Committee has acknowledged ongoing disputes regarding resource management, which have resulted in delays in the approval of the oil and gas law, rendering its passage in the current election cycle unlikely.
A member of the Parliamentary Oil and Gas Committee, Basem Nahmish Al-Gharibawi, noted in a recent statement that “the oil and gas law has been a pressing issue since 2007; however, efforts to enact it have been thwarted by political divisions, particularly regarding relations with the Kurdistan region.” He elaborated, stating that “the law was included in the current ministerial program, with expectations for its formal approval during this parliamentary session. Committees were established in 2023 to engage in discussions around it, with two drafts being presented: one from the federal government and the other from the Kurdistan region. Joint committees were formed to facilitate dialogues between the two sides.”
He emphasized that “while most technical issues were reconcilable, the primary contention lies in administrative matters, including the distribution of powers, the representation of the region and provinces within the Federal Petroleum Council, resource management, and the rights entitlements from past and present operations.”
He went on to say, “The Parliamentary Oil Committee has made significant efforts to engage political leaders to highlight the importance of legitimizing this law, which governs oil wealth fundamental to state funding. Its enactment is crucial for addressing the conflicts between the federal government and the region, contributing to the broader scope of political and economic stability.”
He also pointed out that “the most critical area of disagreement between Baghdad and Erbil pertains to oil revenues and the region’s adherence to directives from both the Federal Court and the International Court,” underlining that “this law is an integral part of the constitutional framework.”
Despite numerous attempts for collaboration, Al-Gharibawi asserted that “the committees established have failed to achieve a political consensus, making it improbable for the law to pass during this electoral session.”
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