Comparison of Iraq oil law drafts, new and old

Recent amendments to Iraq’s oil nd gas law have stirred new political tensions between the central government and the Kurdistan Regional Government in Iraq’s semi-autonomous north.

If enacted, the new law would give more power to Baghdad over all of Iraq’s energy  resources, including those in oil-rich Iraqi Kurdistan.

Here are some of the major differences between a 2007 draft oil law approved by the political blocs, including the Kurds, and the new draft approved by the cabinet in late August and sent on to parliament for final passage.

* OLD: Bidding rounds to include discovered, undeveloped fields
* NEW: Bidding rounds to include all oil and gas fields except
those managed and developed by newly created Iraqi National Oil
Co. (INOC)

* OLD: Ensured participation of central government, regional
governments and producing provinces in developing resources.
* NEW: Central government to manage and develop resources.

* OLD: No mention of seat for deputy prime minister for energy
on federal oil and gas council.
* NEW: Adds deputy prime minister for energy (currently former
oil minister Hussain al-Shahristani) as member of council.

* OLD: Says major groups (Shi’ite, Sunni, Kurdish) to be
represented on oil and gas council.
* NEW: Omits this article.

* OLD: Federal oil and gas council to draw up petroleum
policies, and exploration and development plans for fields and
major pipelines.
* NEW: Council to approve petroleum policies and exploration and
development plans for fields and major pipelines.

* OLD: Oil and gas council to prepare model contracts for
exploration, development and production.
* NEW: Oil and gas council to approve model contracts for
exploration, development and production.

* OLD – Iraqi National Oil Company to take over exploration,
development, production, transportation, storage, marketing and
sales.
* NEW: Iraqi National Oil Company to take over exploration,
development, production, transportation and storage. (Leaves
marketing and sales to State Oil Marketing Organisation (SOMO),
the oil ministry’s sales arm)

* OLD: Regional bodies to carry out procedures of bidding rounds
in the region, with participation of oil ministry, for
exploration, development and production of discovered,
undeveloped fields, except fields managed and developed by INOC.
* NEW: Regional bodies to participate with oil ministry to carry
out procedures of bidding rounds for exploration, development
and production of discovered undeveloped fields, except fields
managed and developed by INOC.

Oil Ministry responsibilities:

* OLD: Oil ministry to consult with regional committees and producing provinces to establish bodies to carry out assignments of oil ministry.

* NEW: Deletes this requirement.

* OLD: Oil ministry to carry out procedures of bidding round in relation to exploration and development of production of discovered, undeveloped fields, except fields managed and
developed by INOC.

* NEW: Oil ministry to carry out procedures of bidding round in relation to exploration and development of production of all fields and exploration blocs, except fields managed and
developed by INOC.