Deal close on Iraqi oil law?

The law was supposed to be passed last Spring. No details of the final law here. The parliament may want to debate the law for some time. We will see whether this is wishful thinking or reality.

WASHINGTON, Oct. 5 Iraq's national security adviser says a deal is "very close" on a federal oil law -- one where "everybody goes home partly unhappy."

Mowaffak al-Rubaie was largely optimistic Friday in a speech during a Washington visit, including on plans to protect and bolster the crucial energy sector.

The most prominent part of this has been a national oil law. It's stalled in Parliament over concerns private and foreign companies will be allowed too much access to the currently nationalized oil sector and a larger debate over how much control the federal, regional and provincial powers will have.

"I wouldn't like to say the hydrocarbons law only needs to cross the t's and dot the i's," Rubaie said at the Center for Strategic & International Studies, a Washington think tank. "We have been saying this for long. But I'll tell you what: There is a huge pressure from everywhere, inside and outside the country."

The U.S. government has pushed the Iraqi government on passing the controversial law both publicly and behind closed doors. It is billed as a way toward reconciliation, since sales from the world's third-largest reserves last year brought in 93 percent of the federal budget.

"We need to apply more pressure, on everyone, to agree on a compromise hydrocarbons law whereby all parties go home partly unhappy," Rubaie added. "That's the best compromise I think, whereby everybody goes home partly unhappy. And that compromise, I think we are very close to that. We need some tweaking on that."

He said the debate is more a constitutional one than political. The Kurdistan Regional Government interprets the constitution whereby federalism is decentralized. Many more nationalist blocs in government want the central government to set oil policies.

This week the KRG signed two more oil deals on their own with foreign firms. These and many others it has signed are considered illegal by Baghdad.

Ben Lando, UPI Energy Editor

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