New Iraq oil law provides the right to "amend" any old Saddam or Kurdistan gov't contracts

[sabra]

http://www.abcmoney.co.uk/news/1820078035.htm

<snip>

He also said the law provided for all oil contracts signed by former leader Saddam Hussein's regime or by the regional government of Kurdistan to be reviewed and amended if needed.

'This law sets the ground rules and draws oil policies for a balanced development in all Iraqi areas,' Jihad said.

A federal council for oil and gas will be formed to study plans to develop oil infrastructure and review the contracts. This council will be headed by the prime minister, Nouri al-Mailiki, with representatives from oil, financial and planning ministries along with the central bank of Iraq.

Iraq's proven oil reserves stand at about 115 billion barrels, the world's third largest after Saudi Arabia and Iran.

[Igel]

1. Good.

Some of the intent-to-sign deals gave ludicrously low returns to Iraq; the difference between the amount per barrel paid to Iraq and the price was easily a bribe. Countries couldn't sign PSAs with Iraq, because they were illegal under the UN sanctions regime; but they could sign agreements stating the terms that each had committed to that would bind them (in some sense) to sign the actual contracts. This explains some of the calls for ending sanctions that we heard in 2001 and 2002--those agitating most loudly on the UN Security Council for ending 'containment' would have profited handsomely.

Whatever else the draft law may say, this part is appropriate.