Explosion at Iraq Oil Field Partially Halts Output

Location: Rumaila Oil Field, Basra Province An explosion at Iraq's biggest oil field on Tuesday sparked a massive fire that partially halted crude production, the state-owned South Oil Co. and Britain's BP said, according to media reports. The blast, which left at least 15 people injured, occurred at a gas compressor at the Rumaila oil field, which runs along Iraq's border with Kuwait. BP and China's CNPC were in 2009 awarded a contract to boost production at the site. An SOC executive said a maintenance team was changing equipment on the compressor when the explosion happened, causing the fire. A BP spokesman said the compressor was owned by the state-run South Gas Co. and not by BP or its partners. But because the Rumaila field feeds gas to the compressor, it was necessary to partially halt production, said the spokesman, without saying by how much. Iraqi oil ministry spokesman, Assem Jihad said the fire was finally extinguished at 19:00hrs local time (16:00hrs GMT), after burning for eight hours. He said 15 people were injured in the blast and fire, while the SOC official put the toll at 19 hurt. Jihad added that repairs had already begun on the site. #AFP

Iraq's Cabinet Approves Delayed Draft Oil Law

Iraq's cabinet has approved a long-awaited draft oil law and sent it to parliament for final passage, a measure seen as key for foreign investors seeking more solid legal guarantees, according to media reports on Sunday. The new hydrocarbons law has been in the making for years but has faced opposition over who controls the world's fourth largest oil reserves, mainly from semi-autonomous Kurdistan in the north of Iraq.

Iraq's parliament last month warned the government it would force through a new draft of the law if the cabinet continued to hold up the original legislation, regarded by investors to be a crucial mark of stability in the OPEC country. "Any other previous drafts should be considered void and should be withdrawn. This draft is the only one presented to parliament," the statement said.

Investors have been waiting for the law's approval to assure a more stable legal framework for exploration. The law is also seen as pivotal to reconciling Iraq's factions -- especially Iraqi Arabs and Kurds -- as the country rebuilds after years of war.

Even without the law, Iraq is already developing oil-fields, signing billions of dollars in contracts with international companies under legislation dating back to before 2003 when a U.S. invasion ousted Saddam Hussein.

The draft oil law was approved by cabinet in 2007 but faced opposition in parliament and was sent back to the government for amendments. In June, Iraq made some changes to the law, which were being reviewed by the cabinet's energy committee.