KRG blames Iraq oil ministry for revenue dispute, says sales will continue


KT News:

The Kurdistan Regional Government (KRG) says in a statement today that the Iraq Ministry of Oil’s (MOO) ‘Request for Arbritration’ against Turkey will fail to block further international sales of Kurd oil exported by pipeline to Turkey. It also accuses the Ministry of misleading the Iraq federal government over KRG oil revenues and of causing the longstanding revenue dispute between Baghdad and Erbil.

The KRG argues that this week’s sale of oil carried through a new pipeline from the Kurdistan Region is not fundamentally different to previous sales of oil carried by road. “The KRG has, with Federal Government knowledge, been exporting oil by trucking through Turkey and Iran for many years” it says. “This new pipeline export by the KRG is wholly consistent with the Constitution. There is no clear reason why the MOO should now depart from established practice in circumstances where the KRG is increasing Iraq’s exports by pipeline at reduced transportation costs”.

The KRG says the sales are constitutionally legitimate because the oil comes from fields discovered after the inauguration of Iraq’s 2005 Constitution: “The KRG has an exclusive authority under Article 112 and Article 115 of the Constitution to manage oil and gas in the Kurdistan Region extracted from fields that were not in production in 2005 (“new fields”). All of Kurdistan’s export oil comes from new fields”.

It also says the MOO has “consistently misrepresented” the scale of the KRG’s income from oil and gas sales.

“Most importantly”, it says, “the MOO has neglected to report to the Federal Government that the vast majority of the KRG’s oil export revenue is received directly by SOMO (State Oil Marketing Organization). The benefits of the KRG’s export have been accepted by the Federal Government and enjoyed by all Iraqi citizens”.

“The MOO’s misrepresentations have prevented the Federal Government from sharing revenues in accordance with the Constitution and has caused the Federal Government to wrongly restrict the KRG’s allocation of federal funds and annual budget entitlements”.

The KRG says this situation entitles it to receive the latest oil sales revenues directly. It adds that “as always” it will account to the Iraq Federal Government for its oil receipts, provided Iraq pays the KRG its agreed share of the national income.

5 Responses to KRG blames Iraq oil ministry for revenue dispute, says sales will continue
  1. KIM
    May 25, 2014 | 17:31

    Page 13 of KIM 2014 report on corruption states that: Kurdistan Democratic Party in South has utilized sodium thiopental, pancuronium bromide and potassium chloride against Kurdish political dissidents during the internal civil war. The main question is where and from what country were they able to provide such lethal chemicals?

  2. Nawzad
    May 26, 2014 | 22:15

    Sales will for sure continue without any interruption but the proceeds from oil will eventually end up in corrupt American Citizens: Masood, Masroor, Mansoor and Nichirvans accounts in corrupt USA banks!

  3. KIM
    May 27, 2014 | 11:51

    To: Bank of America in USA:

    Is that true that Premier Nichirvan Barzani has make a 700 Million dollar wire into his account from Feb. to April? We appreciate some clarification here? How much do immediate members of Barzani and Talbani families hold in USA accounts in Chevy Chase, TD, BOA? We demand the US Department of Treasury to explain?/

  4. Ari Ali
    May 29, 2014 | 19:37

    KIM , do not worry when time comes everything will be explained in details . Look at Ben Ali , Mubarak , Qaddafi and Ali Saleh .

  5. KIM
    June 5, 2014 | 19:13

    Foreign Investment tops 39 Billion in South:

    39 B divided by 6 Million? If Foreign Investment tops 39 Billion in South, then how come:

    KIM 2014 Report ( Based on info collected from different bureaus and public survey):

    1) 70% of our youths can not afford a car.

    2) 50% of our graduated students do not have a decent job.

    3) 80% of Kurdish citizens can not afford to purchase a piece of land or a house in Hawler.
    Even Hawleris are moving out to resettle in suburbs. Arab and Turks from different parts of Iraq are replacing them. 30% of Hawler residents have sold their real estate properties for substantial amounts. A very smart ” Arabization” policy!.

    4) 80% of citizens can not afford medical bills.

    5) Most collage/university students do not have school loans and must have a full-time job in order to support themselves which often-times result in drop-out or delay in their studies.

    6) 60 % of female graduates are unemployed.

    7) 40% of elderlies don’t have any type of pension, especially those who are not affiliated to any political parties.

    1,200,000 barrels of oil were sold from March 2013 to March 2014. What happened to the funds?

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