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Today, the Iraqi Council of Ministers approved the draft of a national hydrocarbon law.
On behalf of the United States, I congratulate Iraq's national unity government led by Prime Minister Maliki, the leaders of key political blocs and the government of the Kurdistan region. I commend the Energy Committee of the Cabinet – led by Deputy Prime Minister Barham Salih with participation by the Minister of Oil Hussein Shahristani; Planning Minister Ali Baban; Finance Minister Bayan Jabr; Justice Minister Hashim al-Shibli; Electricity Minister Kareem Hasan Waheed; Governor of the Central Bank Sinan Shabibi; Prime Minister's Advisor Thamir Ghadhban; and Ashti Hawrami from the Kurdistan Regional Government for their hard work.
This is a significant political achievement because leaders representing all of Iraq's communities have demonstrated that they can pull together to resolve difficult issues of vital national importance.
This oil law, which contains a firm commitment to revenue sharing among the regions and provinces, reaffirms that oil and gas resources are owned by all the people of Iraq.
Under this law, all revenues from the sale of oil will go into a single national account.
All Iraqi regions and provinces will be represented in the Federal Council on Oil and Gas – the principal energy policy making body for the country. Provinces will receive direct shares of revenue, significantly increasing local control of financial resources. The law includes international standards for transparency including requirements for public disclosure of contracts and associated revenues and payments. It also defines the Oil Ministry's role as primarily regulatory -- as is generally the case in other modern countries. Under the approved law, oil will become a tool that will help unify Iraq and give all Iraqis a shared stake in their country's future.
This draft legislation provides the legal framework to allow international investment in the Iraqi oil and gas sectors. Revitalized oil and gas sectors hold the promise of a higher standard of living and a better life for every Iraqi.
The drafting of this framework law was not easy. It presented special challenges for the Iraqi and Kurdistan Regional governments, and the leaders of key political blocs -- but the finalization of this draft sets a precedent for the unity and cooperation that is critical to the stabilization and development of Iraq.
The draft legislation will have to be approved by the Iraqi Council of Representatives when it returns from its recess. But given that all the major parliamentary blocs are represented in the cabinet, prospects for the draft legislation becoming the law of the land are excellent. There is still much work that needs to be done in the hydrocarbon sector. But a vital step was taken today.
For Iraq to succeed, Iraq's leaders know that they need to make progress on the political front and make difficult, but necessary, decisions. They have stated that they are committed to making these decisions and to meeting the benchmarks that they have set for themselves.
This is the first time since 2003 that all major Iraqi communities have come together on a defining piece of legislation. This law is a major pillar of a national compact among Iraqis. A national compact can be achieved if similar compromises are made on the future of de-Baathification and on amending the constitution. Iraqis have had many bad days. There will be difficult days ahead in the struggle to increase security for the people of Baghdad. However, Iraqis can take great satisfaction from the passage of the hydrocarbon law by the cabinet today.
May God Bless the people of Iraq.
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