A new oil and gas law that will be enforced in Iraq is expected to spur investments in the hydrocarbon industry and boost revenue, an adviser to the country’s Prime Minister was reported on Thursday as saying.

Mudhar Saleh said there is a need to speed up the endorsement of the new law by Parliament after a delay of nearly 15 years due to persistent rifts among the country’s governorates and with the autonomous Kurdistan region in the North.

Officials said this month the new law could be ratified after local council elections before the end of the year and that it would permit production sharing with foreign firms.

“I believe this law will establish a national stable roadmap for the oil sector and this will stimulate investment in oil and gas projects,” Saleh told Alforat News agency.

Saleh said the hydrocarbon sector is the main component of Iraq’s GDP, contributing more than 50%, adding that it greatly impacts the general economic activity.

He noted that the law would create a unified oil policy in Iraq, and a pan national committee to manage oil and gas fields, will allow the OPEC member to better utilise its hydrocarbon potential, including in Kurdistan.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.