BAGHDAD, May 8 Most of Iraq's oil production and all of its exports are likely to stop Thursday as its oil union threatens to strike in protest of the draft oil law.
"The central government must be in total ownership and complete control of production and the export of oil," said Imad Abdul-Hussain, federation deputy chair of the Iraq Federation of Oil Unions, in a statement released Tuesday. The union represents more than 26,000 workers. The law governing investment and development of Iraq's 115 billion barrels of proven oil reserves and 110 trillion cubic feet of natural gas is still stalled in negotiations between the central government and the Kurdistan Regional Government.
While only a small portion has even passed through the Council of Ministers, let alone through the full Parliament, one of the possible types of contracts to be signed with foreign investors is production-sharing agreements.
This is the type of deal the unions have come out against, fearing too much foreign ownership in a sector that has been nationalized for more than 30 years.
"The oil law does not represent the aspirations of the Iraqi people," said Hassan Juma Awad, president of the IFOU. He told UPI in March the unions don ' t oppose an oil law or even limited foreign investment. The unions also want a stepped up salary structure and land to build homes for workers.
Unions have successfully fought privatization and salary decreases over the past three years, including blocking foreign companies from entry into facilities and holding up exports.
Iraq produces about 2 million barrels per day and contributes 1.6 million bpd to the global oil market.
Copyright 2007 by UPI
