- The recent passing of Iraq’s oil law (passed by Baghdad) has been a major point of contention for the Kurdistan Regional Government (KRG). The KRG claims that the oil policy is unconstitutional.
- Because there has never been a national oil policy in Iraq, for the past several years the competing regions have been left to their own interpretations of the constitution and for that reason, the country effectively has two different oil sectors–leaving its investors unsure of the legality of their contracts
- Oil legislation is not only caught between these two competing sectors, but also between the legislative and executive branches of government
- If the KRG withdraws its support for the current government due to inability to reach a compromise, the country will be left severely politically fractured.