BAGHDAD, Iraq — Iraqi leaders approved a draft law yesterday opening the country’s oil reserves to foreign investors.

The bill, a benchmark laid down by President Bush for America’s continuing commitment to Iraq, came amid immense pressure from British and American diplomats to enable foreign involvement in what was a nationalized industry under Saddam Hussein.

The oil minister, Hussein Shahristani, promised that oil and gas resources would be “the property of the Iraqi people” and that revenues would be distributed equally among the regions.

“The exploitation of Iraq’s fields will be decided by a process of open bidding, based on model contracts,” Mr. Shahristani said. “The process will be transparent and open.”

Mr. Shahristani said the cabinet agreed the draft law unanimously and expected it to “sail through” parliament. Sunni Muslims, who live in mainly oil-poor areas, had argued that the ruling Shiite majority would control oil-and-gas profits. Kurdish leaders, who control half the reserves, stalled the bill last year in an attempt to preserve contracts signed independently with Turkish and Norwegian firms. The Deputy prime minister, Barham Salih, said the regional government’s deals would be modified to comply with the new legislation.

Iraq’s oil reserves are among the world’s largest but production has fallen for decades and is set to tailspin this year. Washington forecasts a drop in output to 1.3 million barrels a day by the end of the year from just fewer than two million in January.

Under the new plans, foreign companies will be encouraged to establish joint ventures with a reconstituted national company.

Meanwhile, the son of Iraq’s President Talabani joined aides yesterday in denying that his father was gravely ill in Jordan after a heart attack. They said Mr. Talabani, 74, was suffering from fatigue.

An Iraqi vice president, Adel Abdul Madhi, who is a Shiite, was slightly hurt in a failed assassination attempt on his convoy in Baghdad.

[Also, Iraq’s Sunni vice president warned yesterday the Shiite-led government has no choice but to use force against sectarian militias, even though it may be too late to keep them from resuming killings and kidnappings when the Baghdad security crackdown ends.]