Iraq parliament to discuss key oil law

By Mariam Karouny

BAGHDAD (Reuters) - Iraq's parliament should start in early October to debate an oil law, needed to regulate how wealth from world's third largest oil reserves will be shared by its sectarian and ethnic groups, the deputy speaker said.

Khaled al-Attiya said the parliament would take its time to discuss the draft, which is seen as key to reconciling warring Iraqis and attracting foreign investment. But he expected it to pass before the end of the year.

The legislation, which had been expected to pass before the end of 2006, was delayed due to disagreements over control of oil reserves, much of which are in the semi-autonomous Kurdistan region in northern Iraq and in the country's south.

The draft was approved by the cabinet in February but faced opposition from the Kurds, who felt they were getting a bad deal.

In July, the cabinet approved "some linguistic changes" to February's draft.

Attiya, a senior member in the ruling Shi'ite Alliance, told Reuters late on Wednesday there has been an agreement between the powerful Shi'ite Alliance and the Kurdish coalition to go with the draft approved by the cabinet in February.

"That helped in putting the law on schedule (for debate). Possibly in early October," he said.

He said the law should be debated fully, not decided by some back-room deal.