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Iraq’s Oil And Gas Law Committee Meets

by DrDinar

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<a href="">Iraq’s Oil And Gas Law Committee Meets</a>

What seems impossible to some is now being taken action by Iraq. A lot of people doubt, whether the country is capable of rebuilding its wrecked oil industry or not, but Iraq seems to be deaf of what other people are saying because it has been taking action to pass the oil and gas bill in preparation for the coming 39th Baghdad International Fair this November 2012.

AKnews agency (A Kurdistan News Agency in Iraq) just released their statement last September 7, 2012. They said, “Next meeting over choosing one of the three oil and gas bills will be held next week, said coordinator for oil and gas committee at the Iraqi Council of Representatives. The first oil and gas bill introduced in 2007 was suspended due to lack of political consensus. A second one has been proposed by the oil and gas committee and the third one by deputy prime minister for energy affairs, Hussein Shahrestani in 2011.”

Qasem Mohammed, a member of the committee, also said on Sunday that the committee will meet again to review more details and gather more suggestions. Mohammed even stressed that all parties are pushing things to pass the oil and gas law as early as possible.

Well, it seems that all parties have agreed that the 2007 will be the basis for the oil and gas law. Besides, Baghdad and Erbil have agreed to it anyway. Both parties have to wait for the final decision from the Federal Court and UN. Iraqis are determined to get the confirmation although the Parliament did not succeed on its first submission.

So, what happens when the oil and gas law is approved? How will it affect the current economic situation of the country? Will it make a significant difference to the Iraqi dinar? Simple things that can give amazing impact to Iraq’s economy:

1. Iraq will be one of the most significant, if not important, countries in the world in terms of crude oil production. Oil policy affairs shall then be in the hands of Iraq’s ministry of oil giving Iraqis the full control in all areas of operations that concern their oil property.

2. Iraq will (most probably) make more future energy exploration contracts from investors which are more lucrative that can lure a significant number of foreign companies to auctions for manageable exploration blocks.

3. Oil and gas law might contribute to a significant sector in the country which will put Iraq one of the most important Arab countries in the region.

4. Iraqis will gain more opportunity to end the file of Iraq’s foreign debts.

These are just some of the possible things that could happen in Iraq when the oil and gas law is approved. Other (amazing) things are not yet clearly seen but, we all could expect on anything that our minds could uphold, even a stronger currency for the next 3 years. Holding 12% of the world’s oil reserves is already a great explanation why Iraqi leaders are continuously exerting efforts for the oil and gas law to be approved.

Such promising dinar information we have then. There have been a lot of preparations that Iraq has taken to pave for the success of the coming international fair. Oil and gas law is just one of the anticipated discussions for the coming session. The rest are still trivial as no one, not even the Prime Minister, knows the output of the coming session. However, this does not stop them from moving forward. As a matter of fact, the country has given the Presidency of the Council of Representatives to form and manage a joint committee of oil and gas only to create a definite draft as basis for the coming discussion.  Let’s hope this converts to more progress.

Written by DrDinar <a href="">for the DrDinar blog</a>
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