Iraq's oil minister declared yesterday that a long-awaited draft law governing development of the world's second-largest oil reserves had been referred to parliament and could be passed within a month.

Hussein Shahristani did not specify, however, how a potentially divisive conflict with Kurdish regional officials over the control of oilfields had been resolved, and government pronouncements on the progress of the law have in the past proved premature.

The announcement came on the eve of the start of a two-day meeting in the Egyptian resort of Sharm el Sheikh which could see Iraq receive billions of dollars in debt relief and international assistance in exchange for commitments to reform.

Iraq has been under heavy pressure, especially from the US, to pass the oil law before the beginning of the summer. It is a vital part of a legislative package aimed at reconciling Iraqi factions, which US officials say will influence their evaluation of success in stabilising the country.

"It has been sent to parliament now. There has been agreement among the political parties to work together to enact it by the end of the month," Mr Shahristani said.

Kurdish officials could not be reached for comment.

Last week, the KRG issued a statement rejecting annexes to the oil law, which it said would grant Iraq's national oil company control over 93 per cent of the country's proven reserves.

Disputes between the KRG and the ministry over division of authority between Baghdad and regional governments have slowed the progress of the law for nearly a year. The cabinet approved a draft in February, ending months of deadlock between the Kurds and Baghdad over the right to sign contracts with inter-national oil companies, only to see the new dispute arise over the annexes.

Meanwhile, foreign ministers and other officials from Iraq, the US, Britain, the United Nations and Iraq's neighbours including Iran and Syria began arriving in Sharm el Sheikh last night for a conference on stabilising and assisting Iraq.

The conference combines two diplomatic tracks - the UN-sponsored International Compact with Iraq that aims to win Baghdad inter-national assistance, and a series of meetings intended to gain support from Iraq's neighbours in ending political violence.

Iraq's Sunni Arab neighbours, to whom Baghdad owes tens of billions of dollars in loans taken out under the regime of former president Saddam Hussein, have recently expressed dissatisfaction with the progress of Iraq's Shia-led government in reaching out to the country's Sunni Arab minority.

The deputy US Treasury secretary Robert Kimmitt nonetheless told reporters yesterday that the conference would bring "billions of dollars both of new assistance and in debt relief", although he declined to provide specific figures.