Aug. 2, 2007  | Ben Lando, UPI Energy Correspondent

WASHINGTON - The Iraqi Kurdistan oil minister says progress on a regional oil law shows "democracy at work," but final approval will be next week at the earliest.

The Kurdistan Regional Government is moving forward on its own law governing exploration, development and production of its oil and natural gas reserves while the federal government is stuck on its law.

Less than a third of Iraq's vast oil and gas reserves are located in the KRG area, which is less violent than the rest of Iraq and experienced actual economic growth.

Oil and oil products are needed commodities in Iraq, where the country suffers from a fuels shortage. Oil exports last year brought in more than 93 percent of the federal budget.

KRG Natural Resources Minister Ashti Hawrami said progress was made on Tuesday and Wednesday, the first days of debate in the regional Parliament. He said the first 14 of the 62 articles in the law have been approved.

"The reason for the slow progress is because all the members have read the draft and they want to actively participate in the debate," Hawrami told UPI.

"I am witnessing a great constructive, civilized debate and friendly atmosphere," he said. "I am enjoying seeing a young but fast maturing democracy at work."

"On one article," he added, "23 members rose and spoke today. I think it will go faster over the next few days, but we will be into next week before the job is done."

Last week the Patriotic Union of Kurdistan, one of two major blocs in the KRG Parliament and the party of Iraqi President Jalal Talabani, walked out of a session. Officials said it was because they wanted more time to read the law and were refused. Sources told UPI there may be a growing rift between the PUK and the Kurdistan Democratic Party, with the former wanting to wait for progress in Baghdad and the KDP insisting on moving the region forward.

In Baghdad, political parties were already at odds with Prime Minister Nouri al-Maliki's government. The oil law is more of a lightning rod amid coalition defections and boycotts. There are two main issues: how much control the federal government will have over the oil versus the region/local governments, and the extent foreign companies will have access to the oil.