Iraq's cabinet approved a draft oil law yesterday, ending months of wrangling over crucial legislation to regulate management of the world's third largest proven oil reserves.

Iraq needs billions of dollars of foreign funds to rebuild its oil industry after decades of war and sanctions, but until a legislative framework is in place, international oil firms' plans are on hold.

Here are key facts about the process:

The law will now be presented to Parliament for approval. Deputy Prime Minister Barham Salih said political leaders have pledged to have it passed and enacted by the end of May.

Iraq's two national oil companies will be turned into a holding company with operational affiliates to manage different aspects of the industry.

The new national oil company INOC will be in charge of boosting exportsand production.

The law does not state the form of contracts Iraq will make with international firms.

Oil policy will be set at the national level by a Federal Council of Oil and Gas.

The oil ministry will be restructured and transformed into a regulatory body.

All revenues will be deposited in a single national account and then distributed by population.

Existing contracts signed by the Kurdish Regional Government will be reviewed by the KRG to be made consistent with the premise of the law. A commission of independent experts will ratify consistency in case of contention.

Negotiations can be conducted by the regional authority in accordance with procedures and guidelines established by the Federal Council of Oil and Gas. The negotiations and contracts will have to be based on the main criteria of maximising revenues for Iraqi people.

- Reuters