The law aims to distribute revenues from crude oil exports equitably across 18 provinces and open the sector to foreign investment.
Prime Minister Nuri al-Maliki called the law "a gift to all the Iraqi people."
It's seen as a key effort in moves to reunite the war-torn country, but has been the subject of fierce debate among factional leaders.
(compiled from agency reports)
The pipeline from Kirkuk to Turkey is one of Iraq's main oil-export lifelines (epa file photo)
THE FUTURE OF THE ECONOMY. The uneven distribution of Iraq's oil resources has long been a source of tension among the country's ethnic and sectarian groups. Since the fall of Saddam Hussein, the tangled quest to find an equitable way to share oil revenues has been a major stumbling block on the road to national unity.