Iraq Nears Oil Sharing Deal
Posted on Feb 26, 2007
The Iraqi Cabinet has approved an oil revenue sharing plan that would divide profits among the provinces based on population, and allow foreign oil companies unprecedented access to Iraq’s reserves.
Distributing the wealth of Iraq’s natural resources has been a major political obstacle, as most of the nation’s current oil fields are in Shiite territory.
Correspondents say the drawn-out process of passing an oil law has been a symbol of the struggle of Iraq’s ethnic groups to work together to build a stable, independent nation.
Under the terms of the deal oil revenues would be split among Iraq’s 18 provinces based on population levels.
That has been seen as a concession to Sunni Muslims in the centre of Iraq, where there are few oil reserves.