Lawmakers challenge Iraqi oil contracts

BAGHDAD, Nov. 9 (UPI) -- The contracts signed by international oil companies jockeying for a stake in the vast oil resources in Iraq are illegal, a lawmaker said.

A small group of lawmakers in Iraq protested the series of deals awarded to BP, Exxon Mobil and other international oil majors to explore southern oil reserves, The Wall Street Journal reports.

A national hydrocarbon law is stalled currently in Parliament. Recent contracts handed out to oil majors are limited to service deals to get around the legislative obstacle.

Nevertheless, Noor Adin al-Hadyi, a lawmaker on the oil and gas committee, protested the deals because they did not get parliamentary approval.

"This is a warning to the companies that the contracts they signed are illegal," he told reporters, adding the issue could be headed for the courts.

His objection is not expected to thwart the flood of oil deals developing in Iraq, though it might create political uncertainty for oil companies as Iraq looks to enhance oil and gas activity, the Journal noted.

Iraq held its first post-war oil auction in June, though government provisions and security kept most bidders away. A second round is scheduled for Dec. 10.