UPDATE 1-Iraq's Kurds will hold on to oil revenues -Barzani

* Kurdish president says revenues belong to Kurds

* Iraqi government failed with oil law, Barzani says

(Adds details on exports, investments)

By Luke Baker

BRUSSELS, Nov 10 (Reuters) - The president of Iraq's Kurdish region criticised the central government on Tuesday for its failure to draw up a clear law on sharing oil revenues and said the Kurds would hold on to what they earn for now.

Speaking during a visit to the European Parliament, Masoud Barzani said Kurdistan had the right to retain the income from the export of about 100,000 barrels of oil per day, despite a law stating that all Iraq's oil and gas assets are shared.

"Eight billion dollars has been used by the Iraqi oil ministry for development of oil production but unfortunately the level of production has dropped. Therefore we have no faith in that law that already exists," Barzani told a news conference.

Iraq's central government and semi-autonomous Kurdistan have since 2004 engaged in a long-running dispute over Iraq's vast oil and gas assets and the growing revenue generated by them. The discord threatens to aggravate the political strains that already exist between autonomy-minded Kurds and Shi'ites.

According to Iraq's constitution, all the country's hydrocarbon assets are shared and there is a formula for distributing the income among regions, with the Kurdish region entitled to 17 percent of total oil revenues.