A photo released by Iraqi Prime Minister's Office shows Iraq's Prime Minister Nuri Al-Maliki presiding over a meeting of the Iraqi cabinet in Baghdad. Iraq's cabinet approved an amended draft oil law -- a key plank to help unite the country's warring communities -- and forwarded the bill to the parliament.[Photo: AFP]

Iraqi Prime Minister Nuri al-Maliki said Tuesday that his cabinet had approved the oil law and sent it to the parliament for ratification.

"The oil and gas law has been approved at a cabinet meeting unanimously and was sent today to the House of Representatives for first reading tomorrow," Maliki told reporters in Baghdad.

Earlier in the day, government spokesman Ali al-Dabbagh told Iraqi state-run television Iraqia that the draft was approved by the government and consultative committee, which made some linguistic amendments to the law.

An official source from the oil ministry said last month that an agreement was reached between the federal government in Baghdad and Kurdish officials regarding the controversial issues in the draft law.

The draft oil and gas law was approved by the cabinet in February this year but faced fierce opposition from Iraqi Kurds.

The draft law for the management of oil resources has been considered one of the most controversial issues in Iraq, and there are differences among political blocs on the law, concerning the equitable distribution of revenue.

Most of Iraq's known oil reserves are located in the Shiite-dominated south and the Kurdish north.

Iraq sits on the world's third-largest oil reserves and officials have sought, since last year, to finalize the draft.

The law is vital for attracting foreign investment to Iraq, to boost its oil output and rebuild its economy.