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Iraq Shares Oil Riches
The Iraqi government has signed draft legislation to manage the country’s oil industry and share its wealth among the country’s ethnic and sectarian groups. Russian analysts note that the bill closes the door to the country’s vast oil industry for such countries as Russia and China.
The Iraqi government adopted the draft oil bill over the weekend. The legislation now goes to parliament for approval. Iraqi Prime Minister Nouri al-Maliki hailed the law as “another foundation stone” in the building of a new Iraq.
Under the bill, regional administration will be empowered to sign contracts on exploration and development of oil fields with international investors. The contracts will be reviewed by a governmental committee in Baghdad headed by the prime minister.
The oil issue has been the acutest in Iraq’s domestic policy. Most of the country’s proven reserves are in the Shia south or the Kurdish north, which left the Sunnis in central and western Iraq fearful that they would miss out on the oil windfall.
The parties finally managed to find a common ground, agreeing that oil revenues will be distributed in all 18 provinces based on population size.
According to U.S. energy officials, Iraq has the world’s second-larges oil reserves – 112 billion barrels.
Russian experts believe that the law will eliminate open tenders for investment contracts and will thus help American oil companies strike deals with the provinces directly. LUKOIL, which was the Iraqi oil industry’s largest investor under Saddam Hussein, declined to comment on the bill until it has adopted in the Iraqi parliament.
www.kommersant.com
All the Article in Russian as of Feb. 28, 2007
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