Agreement on Key Iraq Oil Law Hits the Skids

Sectarian schism again undermines top political objective

By Nick McMaster, Newser Staff

Posted Sep 13, 2007 1:30 PM CDT

(Newser) – Agreements forged in February over a law regulating the distribution of revenue from Iraq's oil fields are dissolving, the New York Times reports. Hussain al-Shahristani, oil minister for the Shiite-controlled federal government, held meetings yesterday to try to save the compromise, but the northern Kurdish areas have already made deals based on their preferred version of the law.

Those provinces have already signed an oil-exploration contract with a Dallas oil company, an agreement Shahristani says is illegal: "This … lack of cooperation makes people wonder if they are going to be working within the framework of the federal law." The disagreements come as the US is increasingly looking to the Iraqi government for signs of progress towards reconciliation.

[Images (4)]

[Videos (1)]

In this photo released by the Iraqi Government, Iraqi Prime Minister Nouri al-Maliki second left talks with Kurdistan Prime Minister Nechirvan Barzani, left, as Oil Minister Hussain al-Shahristani, right... (Associated Press)

A worker is seen at the Najaf Oil Refinery, 130 kilometers (100 miles) south of Baghdad, Iraq, on Thursday, Sept. 13, 2007. (AP Photo/ Alaa al-marjani) (Associated Press)

Iraqi firefighters conduct a training exercise at the Najaf Oil Refinery, 130 kilometers (100 miles) south of Baghdad, Iraq, on Thursday, Sept. 13, 2007. (AP Photo/ Alaa al-Marjani) (Associated Press)

Iraq's Minister of Oil Hussain Al-Shahristani talks to journalists prior to the start of a meeting of oil ministers of the Organization of the Petroleum Exporting countries at the OPEC's headquarters... (Associated Press)

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Agreement on Key Iraq Oil Law Hits the Skids