July 16, 2007

IRBIL, Iraq, July 16 (UPI) -- The premier of Iraq's Kurdish region is urging the federal government to make headway on a stalled oil law, claiming "unauthorized" changes were made to it.

Nechirvan Barzani, prime minister of the Kurdistan Regional government, issued a statement Sunday calling for fast moves to usher the oil law, as well as a revenue-sharing law, before the Parliament.

"The sooner the agreed drafts are enacted into law, the better for all Iraqi peoples," Barzani said. "While this law is vital for Iraqis, it is also important that we demonstrate to the international community that we are capable of bringing this law into action."

Iraqi Prime Minister Nouri al-Maliki's government is facing increased pressure from the administration of U.S. President George W. Bush to approve the oil law, calling it a "benchmark for reconciliation."

But the law faces numerous opponents. Among them, Sunni politicians fear it will lead to a breakdown in central control, leaving regions strong in a weak federal government. Sunnis worry that, with little oil-rich land, they'll be excluded from money and investment. The oil unions also oppose the law, claiming it will lead to too much access by foreign oil companies.

A text of the oil law was agreed upon in February by negotiators from the Kurdish government and Shiite-led central government. Although the Council of Ministers approved the law two weeks ago, it was altered too much by a judicial council, and the Kurds now oppose the new version.

The Shoura Council "made unauthorized material changes to the agreed drafts, apparently in consultation with unnamed Oil Ministry officials in Baghdad," Barzani said. "It is a delaying tactic that must be swept aside." He called for the February language to be submitted to Parliament.

The revenue-sharing law was agreed upon in June but has not been taken up by the ministerial council yet.

Iraq holds the world's third-largest oil reserves. It produces around 2 million barrels per day now, less than the 2.6 million bpd before the war and far less than its reserves could handle.