KRG Statement on EITI Oil Transparency Report

The following is a statement by Kurdistan Regional Government on what it describes as “the manipulation of the EITI process”:

The EITI oil transparency report that inexplicably disappeared

In 2008, the then federal Deputy Prime Minister, Barham Salih, committed Iraq to achieving compliance with the Extractive Industries Transparency Initiative (EITI), which aims to help citizens in oil producing countries across the world to follow the flows of oil and money.

The EITI is an important globally developed standard that promotes the transparency of oil and mining revenues at the local level. It is a coalition of governments, companies, civil society groups, investors and international organisations. Its rules establish the methodology countries need to follow to become fully compliant with the EITI.

Commitment to the goals and principles of EITI is enshrined in the Kurdistan Region’s Oil & Gas Law of 2007.

The first annual EITI report on Iraq was produced in 2011, covering revenues for 2009. However it disregarded production and export revenues generated in the Kurdistan Region, including oil exported via the state-owned oil marketing outfit, Somo.

The KRG then initiated dialogue with the World Bank and requested to be part of the Iraq-EITI reporting process.

Thus, under the auspices of the World Bank and the international EITI secretariat, the KRG agreed to work with the Iraq-EITI branch to produce a report covering revenues for 2010 that reflected the legal, fiscal and structural realities of the oil, gas and mining sectors in Iraq.

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