Iraq, Kurdistan May Draft New Hydrocarbons Law

Iraq and the semi-autonomous region of Kurdistan may soon reach an agreement on a new draft hydrocarbon law that would help resolve an impasse over who should control oil resources, Iraq's oil minister said Thursday reported Dow Jones Newswire.

Disputes between the federal government in Baghdad and the Kurdistan Regional Government in Erbil have prevented agreement on a draft federal oil and gas law for more than five years.

The agreement would be important in settling a dispute between Baghdad and the regional government in Kurdistan, as the Iraqi government doesn't recognize many deals signed by the Kurds with foreign companies, the newswire report said. It wants to review these deals and bring them in line with oil laws valid in Baghdad.

"The parliament has tasked the federal oil minister and minister of natural resources in Kurdistan to reach a version of the law acceptable to all parties," federal oil minister Abdul Kareem Luaiby told reporters in Baghdad.

"A new amended version of the law is expected shortly. It depends on discussions," Luaiby said without giving a timespan for reaching an agreement.