IRAQ'S Oil Revenue Distribution Problems!

July 15-2009:

The Federal Government In Baghdad & It's Relations With The Kurds!

Since the military overthrow of Saddam Hussein, and the subsequent Democratically elected Shia controlled government and Parliament. There has been some worrying and concerns with how the National Oil Revenues will be distributed.

Legislation was enacted since 2003 in the Iraqi Parliament, ratified and passed into law, but have not been implemented as of yet. 

It pertains to the entering and approving of all Oil Contracts with foreign companies, and how the revenues will be distributed.

However, at the present time, the Kurdish government in the Kurdish controlled region has already entered into Oil Contracts with foreign companies. But under the current Iraqi Legislation, those contracts MUST be approved by the Central Government in Baghdad. 

Therefore, if any oil contract is entered into without the prior approval of The Central Government in Baghdad, those contracts have no legal bearing, and would be null and void under the current laws.

Meanwhile, the potential for Iraq to produce huge quantities of oil, and export increased amounts of oil is tremendous. And there are still many oil fields that have yet to be explored and developed in several regions of Iraq.

The US military was protecting all of Iraq's Oil fields since the invasion started. But that will soon come to and end, with the handing over of such responsibility to the National Security Forces of Iraq very soon.

Derryck.
NYC.