ERBIL, Kurdistan Region – The Kurdistan region could earn an estimated 11 trillion Iraqi dinars in 2016 from oil and other sources if it sells its own oil globally, Kurdish oil and natural resources minister Ashti Hawrami said.
In an interview with Rudaw on Wednesday, Hawrami also blamed the current financial crisis in the Kurdistan Region on Erbil’s lagging dispute with Baghdad and the political deadlock in Kurdistan over the presidency.
“The main reasons behind delayed payments are two: a political crisis with Baghdad and the Kurdish political leadership,” Hawrami said.
He explained that Kurdish politicians were unable to decide on an alternative plan calling for direct oil sales, after Baghdad failed to honor an agreement signed last year.
“I had an alternative plan, which was to sell our own oil,” Hawrami said, criticizing the Kurdish politicians and leadership and blaming them for wasting six month to finally agree on implementing his plan.
“Baghdad was not able to send the budget that we agreed on, which was $1 billion monthly, and which was enough to pay the salaries,” Hawrami said.
“They have only sent $200 million for the first month and $300 million for the second month,” he added.
According to the Erbil-Baghdad agreement signed last year, the central government should have given 17 percent of the national budget to the Kurdistan government -- estimated at $1billion – for oil supplies from Kurdistan of 550,000 barrels per day.
A financial crunch in Kurdistan sparked major demonstration in several Kurdish cities earlier this month. At least five people were killed and dozens wounded when angry protesters attacked the headquarters of political parties, demanding four months of unpaid salaries.
Based on the ministry’s calculation for the year 2016, taking into account Baghdad’s own financial problems, the Kurdistan region only expects to receive 6 trillion Iraqi Dinars ($5 billion) from the 550,000 barrels per day it is supplying through the central government.
Hawrami said that revenues in 2016 would reach about $11 billion if Erbil sells its own oil on the global market, something that Baghdad and Washington have so far both opposed.
Comments
Rudaw moderates all comments submitted on our website. We welcome comments which are relevant to the article and encourage further discussion about the issues that matter to you. We also welcome constructive criticism about Rudaw.
To be approved for publication, however, your comments must meet our community guidelines.
We will not tolerate the following: profanity, threats, personal attacks, vulgarity, abuse (such as sexism, racism, homophobia or xenophobia), or commercial or personal promotion.
Comments that do not meet our guidelines will be rejected. Comments are not edited – they are either approved or rejected.
Post a comment