Iraq is pushing ahead with a controversial oil law which critics say threatens to hand over the country's resources to foreign-owned companies, throwing the country into further sectarian chaos.

The Iraqi government is reportedly finalising oil exploratory deals by July even before the law is passed in parliament.

With the bulk of the contracts going to Western oil companies, the real motive for the US invasion of Iraq has now become abundantly clear.

Opponents say the new hydro-carbon law will split Iraq into several federal states, each with control of their own oil resources rather than being dependent on the central government in Baghdad.

The Iraqi cabinet is yet to pass the controversial oil law [GALLO/GETTY]

They say the law should be enacted quickly in order to pave the way for international oil companies to start investing in the dilapidated and war-hit Iraqi oil sector.

Are Iraqis signing away their future with this new controversial oil law? Is the law linked in any way to agreements between the US and Iraq over a long-term US military presence in the country?

Our guests this week:

Kamil Mahdi, an economist with Exeter University, and Robert Bryce, an oil and energy expert from Austin, Texas.

Watch part one of this episode of Inside Iraq

Watch part two of this episode of Inside Iraq

This episode of Inside Iraq aired on Friday, June 20, 2008

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