Sign In / Up

Add contribution as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Comment as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Login

Not a member Register   Forgot Password
or connect using
 

Email

 

Rudaw

Kurdistan

Baghdad Rejects Oil Revenues Mechanism Proposed by Turkey

19/11/2013
Iraqi commandos survey Fauqa Oilfield in Maysan province. Photo: AFP
Iraqi commandos survey Fauqa Oilfield in Maysan province. Photo: AFP

By Samia Zuber

ERBIL, Kurdistan Region – Iraqi Prime Minister Nuri al-Maliki’s State of Law Coalition has rejected a Turkish proposal for an escrow account to monitor Iraqi oil revenues and resolve a pending payment issue between Baghdad and Erbil.

“Iraq is a sovereign country and it does not seek counseling from foreign countries for distribution of its revenues,” said Khalid Saadi, an MP from the State of Law Coalition. “Iraq has laws to settle these issues,” he added.

Last Saturday, Turkish Energy Minister Taner Yildiz proposed a mechanism to end the long-standing dispute between Iraq and its autonomous Kurdistan Regional Government (KRG) over the sharing of oil revenues. Yildiz said that he discussed the issue with Iraq’s Deputy Prime Minister for Energy Affairs Hussein Shahristani, but has not yet heard back from him.

“The distribution of the revenues would be carried out by Iraq, we would only hold these deposits at a Turkish state bank," said the Turkish energy minister.

Saadi said that Yildiz’s proposal would only lead to further deterioration of relations between Baghdad and Ankara.

After two years of strained relations over Syria, Sunni populations in Iraq and Kurdistan energy deals with Ankara, Iraq and Turkey mended relations earlier this month through exchange visits by their respective foreign ministers.

The Iraqi parliament has failed to pass the Hydrocarbon Law, which has been languishing since 2007 over disagreements between Kurds, Sunnis and Shiites.

Meanwhile, Farhad Atrushi, a member of the Iraqi parliament’s Oil and Gas Committee, expressed doubt that Baghdad would ever agree to Turkey's proposal. “Article 112 of the Iraqi constitution allows the KRG to run its oil affairs,” he argued.

That article of the Iraqi constitution allows the federal government, in cooperation with the producing regional government and governorates, to manage oil and gas extraction. It also allows the right to distribute revenues “in a fair manner in proportion to the population.”

Atrushi concurred with Saadi that the distribution of Iraqi revenues is an Iraqi internal matter, but believed that other stakeholders should be taken into consideration. “Undoubtedly, this is a domestic matter, but Turkey is still a party in this issue because Kurdistan’s oil pipelines go through Turkey. In addition, the biggest Turkish oil company has investments in Kurdistan’s oil sector,” he said.

Atrushi maintained that the Kurdistan Region should not be treated like another province. “The region has been governing itself for years,” he noted.

The KRG demands that Baghdad pay the fees for international oil companies operating in Kurdistan, which it says amount to $5 billion.

Over such disputes, the KRG has halted exporting some 100,000 barrels per day since December 2012 through Iraqi-Turkish pipeline that are managed by the central government.

Comments

 
Bill Lees | 20/11/2013
Why should Maliki care about obtaining more revenue for all Iraqis? His son has billions of dollars in real estate throughout the Saudi peninsula,and some relly nice Maseratis to drive around London and pick up the girls!They are living large in the Green Zone at times.
Wild Boar | 21/11/2013
This disagreement over oil revenue cannot go on for ever. I think the best course of action is to set up an independent commission with equal members of from Iraq and Kurdistan region to hammer out a proposal which then should be debated by both Iraqi parliament and Kurdistan parliament. If both parliaments agree on the draft or the amended version then it should be made to law.
FAUthman | 21/11/2013
Crrently there may be close to forty oil companies working in Kurdistan under PSC contracts with the KRG. Each will present individual production costs and profit figures for which they require payment. These figures need to be verified and accepted by the KRG alone, or jointly with Baghdad, before payments are made. Working jointly with Baghdad has been tried by Arbil but it has not worked, for Baghdad has continuously disagreed, legitimately or not, with Arbil`s figures. So far $5 billion in bills have accumulated but have not been paid. This is an accounting issue and will continue being a problem but with increasing complexity as more companies demand payment, as long as both Arbil and Baghdad have to agree on the payment figures in the absence of an independent auditor. That is where the U.S. needs to step in and help set up a payments mechanism that is equitable and efficient. The export logistics of oil and gas from Kurdistan and the accounting and disbursement mechanisms have to respond to the unique requirements of the individual PSC contracts made with the KRG.
Russel Check | 22/11/2013
@Wild Boar pointless, everything has been tried with Baghdad, they haven't' honored ONE single agreement, not even the constitution, that means that they will never honor any agreement in the future, it's the same mentality of Saddams era, they think they can dictate everything. I don't think KRG leadership are under any illusions any more, they know who they're dealing with. KRG next move should be to unite ALL anti Malaki factions and kick both him and his lapdog Sharistani from their thrones.
Tags :
Print Email to a friend
Save this story
6935 Views

Be Part of Your Rudaw!

Share your stories, photos and videos with Rudaw, and quite possibly the world.

What You Say

richard40 | 10/22/2014 10:24:40 PM
The Kurds seem to be the only ones that are really fighting ISIS effectively. We should be giving them any arms they ask for, but unfortunately they...
MadMatt | 10/25/2014 12:55:27 AM
I'm in the US, but I served with the 173d Airborne Brigade Combat Team in the GWOT, I would love to get some ISIS! Peshmerga, militia, anyone, give...
Peshmerga Forces Recruit Christian Fighters, says Local Official
| 14/9/2014 | (50)
Free Kurd | 10/24/2014 8:36:33 PM
The Basque nation is with the Kurdish people,and we highly appreciate their freindship and noble sensitivity.As to Spain,there are disturbing and...
Paul | 10/25/2014 12:51:07 AM
Send them back where they came from. They will just cause trouble and do not deserve to be there.
ISIS family members among refugees, Kurdish official says
| yesterday at 07:33 | (2)
Che guevara | 10/25/2014 12:30:50 AM
All of Facts show us that Turkish government organization system is one of awful enemies of Kurds. So let's say down with Turkish government...
homayoun | 10/25/2014 12:32:23 AM
Homayoun: Why Peshmarga takes for ever please this is Emergency situations. Turkey putting all there effort to bring all ISIS forces to fight Kobane....
Kurdish defenders retake Kobane hill; Peshmerga reinforcements reduced
| yesterday at 04:16 | (24)
Afshien | 10/20/2014 8:57:48 PM
Pan Turks, you should be shame of yourself, you country is setting on loser side of the world, and helping ISIS to fight the humanity, ISIS is is a...
Ryan Page | 10/24/2014 11:57:16 PM
There are many around the world, former soldiers who are considering and hoping to join with the KRG Peshmerga (the only Patriotic, courageous, and...
Pro-Kurd European volunteers urged to think twice
| 18/10/2014 | (13)

Elsewhere on Rudaw

Kurds closer to participation in Iraqi government 13/10/2014 | (11)

Kurds closer to participation in Iraqi government

The formation of a new Iraqi government was a more
Jihadists control all exits from Mount Shingal, says Peshmerga official 13/10/2014 | (11)

Jihadists control all exits from Mount Shingal, says Peshmerga official

"10,000 people were still on the mountain and as more
Hundreds of European Kurds join Peshmerga and YPG 13/10/2014 | (27)

Hundreds of European Kurds join Peshmerga and YPG

"My ancestors have given their blood for us, so more
0.452 seconds