The Dangers Lurking Within Iraq’s Oil Law

May 4, 2018 | Nick Butler
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In many ways Iraq’s oil industry is a success story. After decades of isolation, oil production has risen by more than 75 per cent since 2013 to almost 4.5m barrels a day and, despite conflicts with the Kurds and Isis, security has been maintained and exports steadily increased. There are plans for a further rise in output to more than 6m b/d. The country is back as a fully participating member of Opec, the oil producers’ cartel, and has benefited from the recent surge in world prices. But behind the superficial success lies a power grab that could undermine all the progress.  A petroleum law was passed this year that will transform the largely successful relationship between the government and operating companies. This creates a single entity with sole responsibility for all aspects of the development of the oil and gas sector across Iraq.