Iraq Heads For Oil And Gas Law With UN


Just for the record, so far in August 2012, Iraq’s southern oil exports
reached to about 2.25 Million barrels per day. This oil production made
its course to have a post-war record. Last August 20, 2012, London
Reuters stated that, “Iraq’s oil exports from its southern ports have
risen by 30,000 barrels per day (bpd) so far in August versus last
month, according to shipping data tracked.” Truly, this made Iraq goes
aggressive to pass its oil and gas law these days.
According to oil expert Hamza Jeweler last August
21, 2012, “Delay enactment of the oil and gas to severe intransigence
between the federal government and the Kurdistan Regional Government,
confirming the existence of any obstacles in the articles of the law.”
It was even noted that the Federal Government had already submitted their draft on the oil and gas law. However, when the Kurdistan Regional Government
submitted their own draft, it turned out that both drafts are 80%
identical with each other thus; there was a prompt postponement of the
law. Fortunately, according to oil expert Jawahrifa, it was not
surprising to see similarities for both the drafts submitted because
both parties got the same logic and objective – for the benefit of Iraq
in general.
Jeweler also stated that even if there were similarities between the
two, both parties promise to resolve the crisis. Besides, the Federal
Court and UN shall hold the final decision. It seems that UN heard and
felt Iraq’s plea that according to special envoy, Martin Kobler when he
told the AFP last August 13, 2012, “UN has put together an internal
taskforce to tackle the issue.” Kobler added, “We want to start with a
discussion on the revenue-sharing, and then the oil and gas law.
The oil and gas law is a good entry point to tackle some major issues –
the Arab-Kurd issue, the issue of federalism. I would say it is the
key. It gives you a foundation.” There it goes the United Nation’s full
support to Iraq.
Truly, Iraq has the right to go aggressive over their oil since it’s
their property in the first place. They only need to have proper
management of the oil wealth that belongs to the people. If they can
maintain coordination between the regions and the center with
responsibilities being clearly identified, Iraq will have its way to
rapid economic growth and strong currency. They also need to end
different interpretations that have no definite root with regards to the
country’s oil wealth.
Kobler also stated that Diplomats and some oil analyst are
persistently pointing to a wide row of disputed territory issue between
Iraq’s autonomous Kurdish region and its central government. Kobler
listed his two other priorities for Iraq. First, is the
selection of a new electoral commission for the proper organization of
provincial elections for 2013. Second, is the creation of upper chamber
of parliament.
This gives us the conclusion that in as much as Iraq wants to pass
the oil and gas law so is UN and the Federal Court. UN even set a new
electoral commission for Iraq just to pave the way for proper political
administration in the country. When the oil and gas law is approved, new
oil terminals and rising production boost shipments shall be expected
because the country can go all out in their production without having to
worry of sanctions and laws. Foreign investors will have strong tie
between the country’s oil industries. Getting the
highest oil production since before 2003, Iraq should go all out even
with the presence of negative speculations and skeptical people.
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