Kurds say Iraq draft oil law not yet finalized

Jan. 23, 2007
Kurdish officials have dismissed the idea that Iraq's main political factions have overcome their differences on a draft oil law and said a final agreement could be some time away.

Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 23 -- Kurdish officials have dismissed the idea that Iraq's main political factions have overcome their differences on a draft oil law and said a final agreement could be some time away.

The Kurdistan Regional Government (KRG) issued a statement saying the draft law has not been unanimously finalized and that statements to the contrary—attributed to an oil ministry spokesman—were inaccurate and misleading.

KRG attributed the remarks to a Jan. 17 article published by Reuters news agency that quoted the ministry spokesman as saying, "The committee finalized the draft of the law last night [Jan. 16]. It was approved unanimously and it will go before the cabinet early next week."

The Kurdish group acknowledged that the process of drafting the oil law is nearing completion but said important annexes to the law are still pending and that three associated laws must be drafted and approved before the whole package can be considered final.

KRG identified the additional laws as the revenue-sharing law, the Iraq National Oil Co. charter law, and a law to define the oil ministry's new role.

Under the draft law, KRG would be allowed to negotiate and sign new contracts within its region and to receive its share of Iraq's oil revenue, to be guaranteed and regulated by law.

The draft law also acknowledges that KRG is the competent authority to review its own previous contracts and make them consistent with the law.

KRG's announcement coincided with reports that South Korea will send a joint business-government delegation to Kurdistan to discuss future oil field developments.

The South Korean Ministry of Commerce, Industry, and Energy announced the trip, saying the delegation plans to meet with KRG's head and the minister of natural resources.

A ministry spokesman said the team is expected to review future oil field development endeavors and security conditions in the region.

Officials from the Ministry of Commerce, Industry, and Energy, the Ministry of Foreign Affairs and Trade, Korea National Oil Corp., GS-Caltex Corp., and SK Corp. will be in the 14-person delegation to Kurdistan Jan. 22-25.

Contact Eric Watkins at [email protected].