Kurdish government approves draft oil, gas law

[sabra]

Source: Voice of Iraq

Arbil, June 25, (VOI) – Iraqi Kurdistan's region's prime minister, Negervan al-Barazani, said on Monday that he sent a message to the federal government in Baghdad containing his government's approval of the draft oil and gas law.

Speaking at a press conference in Arbil, he said, "I sent a message to Iraqi Prime Minister Nouri al-Maliki to update him on our approval of the proposed draft law and we will wait to have it sent to the parliament."

The draft oil and gas law for the management of oil resources is considered one of the most controversial issues in Iraq, and there are differences among political blocs on the law regarding the equitable distribution of revenue.

The law, if approved by parliament, will give Iraqi and foreign investors the right to set up establishments and oil refineries and use them for 50 years.
Most of Iraq's known oil reserves are located in the Shia-dominated south and the Kurdish north.
Iraq sits on the world's third-largest oil reserves and officials have sought, since last year, to finalize the draft law.
The law is vital for attracting foreign investment to Iraq, to boost its oil output and rebuild its economy.

Read more: http://66.111.34.180/look/english/article.tpl?IdLanguage=1&IdPublication=4&NrArticle=48944&NrIssue=2&NrSection=1

[nealmhughes]

1. The last sentence of the clip has the author declaring as a matter of fact that "the law is vital

for attracting foreign investment to Iraq, to boost its oil output and rebuild its economy." I cannot help but to wonder why this is "vital"?
The fifty year concession is the most troubling aspect to me. It would seem that the holders of the oil, namely the people of Iraq, and in this case, the people of Kurdistan, would not be so ready to have 3 to 4 generations of BP, Exxon, Texaco, etc. control over their main source of outside income! It might make sense for a 10 year limited concession of certain fields and refineries, but to give the whole kit and kaboodle to Big Oil is ludicrous.
Kurdistan must get its PKK supporters in line before any sense of stability can be restored to the region -- Turkey is chomping at the bit right now and sabre rattling to a near frenzied level. Would not investment come after the investors are assured that their investments are not going to be rendered moot after a Turkish invasion or a new anti-Kurdish Arab pogom?
One would think that the Kurdish people would have got a better deal than the present one. Unless, of course, there is personal monies to be made, but heaven forbid that one insinuate that big money might lead a governmental official to vote against the constituents' best interests in order to enrich themselves. . .why that is the equivalent of saying that the Big Pharma and Big Insurance bankroll our Congress and therefore we have no single payer insurance on the majority of Western Industrialized model. . .

[OldschoolDem]

3. Without foreign investment where would the money come from

Iraq needs billions of dollars of foreign capital to rebuild its oil infastructure badly. 10 years is not long enough to develop an oil field first off. 50 years is enough time to explore, drill and produce. 10 years might get you two of those steps. Big Oil is not the enemy here. If you don't remember the oil industry suffered badly in the 80s and 90s because of extremely low prices and a market flooded with crude oil. A BP or Exxon operation in Iraq would mean lots of jobs for Iraqi citizens.

Also if you want to blame someone for high prices look in a mirror. All of us can make life changes to use less gasoline, but we are addicated to our cars so we don't


Of course its risky to invest in Iraq right now, but any investment carries some risk.

[Joe for Clark]

2. You know - that is a pretty nice place up north.

They have jobs and shopping malls, it is green - all that. Nice -

I don't know what that law says they are proposing - but I bet they keep their share of the money - or they wouldn't agree to it - my guess.

If they do keep their standard of living high - it can only be at the cost of other provinces.

Cause the rest of the country is garbage.

I don't know too much about their oil production I guess - what I do know - is something greater than 50% of the oil exported is from that north - that money that keeps the Kurds in relative luxury. I know that.

Joe

[acmavm]

4. Okay, I bet the Sunni and the Shi'ite population are just gonna love this.

What do the Kurd's really get in return? Protection from Turkey? Autonomy? Their own country even?

I just don't see this working out.