The Iraqi parliament voted March 5 on the National Oil Company draft law, which regulates oil production and exports and fairly distributes its revenues to the different regions of Iraq.

The clauses of the law stipulate that a percentage of oil imports be divided to Iraqis residing in the country as well as the Kurds in Iraq's Kurdistan Region if authorities in the region agree on delivering the oil production from their fields to the Oil Marketing Company (SOMO).

Historically, the law forming the Iraq National Oil Company was first issued in 1964 in order to develop oil production from exploration and drilling for oil and natural hydrocarbons to the manufacturing of products. Oil was nationalized in 1972, and foreign company investing was excluded. In April 1987, Iraq decided to merge the company with the Ministry of Oil. SOMO has continued to run the oil transfer and sales operations since its founding in 1998.

On March 5, Iraqi Minister of Oil Jabbar al-Luaibi described the vote on the draft law as “a historic decision.” In fact, according to oil expert and general director of the Iraqi Oil Ministry Hamza al-Jawahiri, who participated in drafting the law, “It will allow Iraq to develop fields, refineries and production plants through the efforts of local companies owned by the state. This would guarantee full sovereignty over the wealth of resources and give Iraq independence from relying on the services of foreign companies.”