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Baghdad puts foot down on Kurdish O&G contracts

Iraq oil ministry reacts to Kurdish regional govt. co-op with RWE

Iraq-oil-gas

Iraq’s oil ministry issued an official statement stressing that Iraq is exporting crude oil and gas through the Iraqi oil marketing company exclusively saying that no other party is authorised to sign contracts with international or local companies in this regard.

The statement came in response to a statement made on the Kurdistan Regional Government (KRG) website in late August saying that it along with German electricity and gas company RWE had agreed to transport future gas supplies to the Nabucco pipeline project.

The ministry, seeking to reinforce its authority said: “the export of crude oil and gas and their products is the validity of the Oil Ministry and the central government exclusively through the Iraqi oil marketing company.”

The ministry also stressed that no other party had any such authority to export crude oil or gas or their products adding that “any other commitments made other than the [with the] Ministry of Oil to export gas via the Nabucco pipeline are invalid.”

In the original statement made on the KRG’s official website, Barham Salih, Prime Minister of the KRG said: “RWE will bring the know-how and insights of one of Europe’s most important gas distribution companies to Kurdistan.”

“These resources are being developed for the people of Iraq in accordance with the Constitution. Gas not needed at home will be available for export,” he added.

In a statement on its website in relation to the cooperation agreement in late August RWE said: “The cooperation also foresees the negotiation of gas supply agreements to enable gas from the region to be transported to Turkey and Europe via the Nabucco pipeline. Export revenues would be shared and available to the whole of Iraq and provide much needed support in the reconstruction of the region and the country.”

Staff Writer

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