Page 4 - MEOG Week 19 2022

MEOG COMMENTARY MEOG

KRG to respond to Baghdad’s

overtures this week

Iraq’s Federal and Kurdish authorities remain embroiled in
a battle over control of northern oil and gas development.

IRAQ KURDISTAN’S Regional Government (KRG) via metering stations at the border town of
has said that it will respond this week to moves Fishkhabour. Independent oil sales have been a
by Baghdad to take control over the northern major issue for relations between Baghdad and
WHAT: Iraqi area’s oil and gas sector. Erbil and have proven thorny enough an issue to
Erbil and Baghdad have The announcement comes as the Federal prevent billions of dollars in budget share being
been at odds for years authorities intend to begin implementing a Feb- transferred to the latter.
over oil development and ruary declaration by the Supreme Court that In March, the MoO sent a letter to the KRG
exports, but a court ruling laws regulating the KRG’s oil and gas industry informing Erbil of its intention to set up a new
in February has brought were unconstitutional and said region’s contracts state oil firm to manage the Kurdish energy sec-
the issue to a head. should be voided. tor, to which all oil and gas activities must be
Talks have been ongoing between the Minis- transferred. The ministry suggested that the new
WHY: try of Oil (MoO), the Iraqi National Oil Co. and firm should be called Kurdistan Oil Co. (KOC)
Both sides have cited the the KRG for more than 75 days with no agree- and based in Erbil and inferred it would be a sub-
constitution as providing ment having yet been reached. sidiary of the recently reconstituted INOC.
support for their cases, Talks have been ongoing, with Khaled
but this offers little Ruling Shwani, head of the KRG delegation, saying in
clarity. In the February ruling the court said that the April that discussions had been “characterised by
KRG should deliver the “entire production of frankness” and included efforts to “address the
WHAT NEXT: oil fields in Kurdistan” to the state oil marketer oil problem in all its aspects in a radical way”. He
The KRG has said it Somo. added that while the sides were not close to an
will provide a formal It added that all the KRG’s contracts with agreement, he said the talks were “a good begin-
response to the Ministry international oil companies and foreign govern- ning for cooperation”.
of Oil’s efforts to regulate ments covering exploration, production, exports Oil Minister Ihsan Abdul Jabbar emphasised
its oil and gas sector this and sales were invalid and that details should be the MoO’s alignment with Article 112 of the
week. provided to the MoO in Baghdad for auditing. 2005 Iraqi constitution – covering the produc-
Erbil currently exports around 360,000- tion of oil and gas the Iraqi constitution – while
370,000 bpd of crude independently from praising “the understanding of the members of
Baghdad using a pipeline which links to the the delegation for the topics addressed in the
Turkish section of the Kirkuk-Ceyhan pipeline meeting”.

P4 www. NEWSBASE .com Week 19 11•May•2022