The Oil and Gas Law: Why Has It Not Been Enacted? A Reading of the Problem and the Solution

Abstract

This study examines the reasons why Iraq’s Oil and Gas Law has not been enacted despite the submission of several draft laws since 2007. It analyzes the constitutional, political, institutional, and administrative factors that have complicated the legislative process and deepened disagreement between the federal government, the Kurdistan Region, and oil-producing governorates. The research reviews the content, structure, and declared and undeclared objectives of the draft laws, with particular attention to the management of oil and gas resources, the distribution of revenues, and the role of national institutions in protecting public ownership of petroleum wealth.

The study argues that the absence of a comprehensive oil and gas law has contributed to continued ambiguity in authority, policy-making, contracting, and revenue management. It highlights the need for modern and good governance in the petroleum sector through transparent decision-making, clear separation of powers, effective oversight, and the re-establishment of the Iraqi National Oil Company as an institution representing all Iraqis. The study also discusses possible mechanisms for managing oil revenues, including sovereign and development funds adapted to Iraq’s economic and administrative context.

The research concludes that enacting an oil and gas law should be preceded by constitutional and institutional reforms that clarify ownership, authority, and revenue-sharing principles. Such reforms are necessary to ensure that Iraq’s petroleum wealth serves the public interest, supports sustainable development, strengthens national unity, and protects the rights of both present and future generations.