Iraq Cabinet Endorses Draft Oil Plans

Iraq's cabinet has approved changes to a landmark draft hydrocarbon law and will finally submit the bill to its parliament after months of bickering between central government and Kurdish officials, according to Reuters.

The law grants regional oil companies the power to sign contracts with foreign companies for exploration and development of its 80 known fields, 65 of which will be offered up for bids for development contracts once the draft law is approved.

The Kurds had previously said some of the annexes were unconstitutional because they took oilfields from regional governments and placed them under a new state oil company. The US has been pressing Iraq's leaders to speed up the formation of the oil law and other measures it views as crucial to spurring national reconciliation.

Arabic channel Al Arabiya television, has also reported that an oil council, made up of officials from each oil-producing region, will be formed to draw up oil policy and approve all contracts allowing regions and provinces to hold talks with oil firms.

Iraq sits on the world's third-largest oil reserve. Officials have been struggling since last year to finalise the draft law, which is vital for Iraq to attract investment from foreign firms to boost its oil output and rebuild its economy.