Iraqi Cabinet Approves Deal to Divide Oil Revenues

Every region would get a share of profits based on population
By Noah Reibel,  Newser User
Posted Mar 6, 2007 11:04 AM CST
Iraqi parliament in session.   (Associated Press)

(Newser) – The Iraqi cabinet approved a law yesterday spelling out how revenue from the country's petroleum reserves will be doled out to provinces: based on population. The deal, which must be approved by the parliament, eases Sunni fears about being cut out of wealth generated by oil reserves in Shiite areas.

The Kurds should be appeased by a provision giving provinces the right to sign contracts with foreign companies for exploration or development of fields. The law also institutes a bidding process for oil contracts designed to attract foreign investment.