KRG Hits Out at Baghdad over Oil Policy

The Kurdistan Regional Government has issued a strongly-worded statement challenging the policy of the Federal Government and the Ministry of Oil:

The Kurdistan Regional Government is proud of the achievements of its oil and gas industry since the fall of the former regime in 2003.

It expects the federal government of Iraq to be proud of them, too.

Since oil exports from the Region started in 2009, billions of dollars have flowed into Iraq’s treasury from fields in Kurdistan that have been explored, discovered and developed under the KRG’s modern, progressive and investor-friendly petroleum regime.

All this has been achieved by attracting world-class companies to the Region with minimal financial risk to the Iraqi state.

One would think that federal officials in Baghdad would embrace the progress made in the Kurdistan Region and value the contribution to the nation’s wealth.

One would think that federal officials would recognize the use of the Regions’ natural gas to provide electricity to its people and those of hard-pressed neighbouring provinces.

One would think that federal authorities would applaud the KRGs plans to create a northern energy corridor for Iraq, whereby up to 3 million barrels a day could soon be flowing through the north of Iraq to Turkey and international markets beyond, and the revenues are shared by all Iraqis.

One Response to KRG Hits Out at Baghdad over Oil Policy

  1. Lorenzo January 19, 2013 at 8:22 am #

    Very well written! And top of all above, SOMO has collected the moneys for exporting all oil including the one from KRG territory. Unilateraly, SOMO and alikes do not honor the contracts with the OIC’s operating in Kurdistan, but retain the money. Can you understand that many IOC’s are alarmed and are calling this behavior for theft or even harder words?
    The harsh language used by the Oil ministers in Baghdad may scare small oil companies and now with the consolidation of IOC’s in Kurdistan, there is no way that Gazprom, Exxon and alikes will fell down for the rod of Baghdad.
    Have you not learnt that capitalism and IOC’s have a very good and large memory? They will never forget nor forgive such behavior.