The Ministry of Natural Resources (MNR) welcomes the passage of the Oil & Gas Revenue Fund law through the Kurdistan Parliament and congratulates the people of the Kurdistan Region, the members of parliament, and the Kurdistan Regional Government Council of Ministers for the entry of the law into the Region’s statute books. MNR will ensure that the new legislation is implemented as soon as possible.
The Oil and Gas Revenue Fund law authorizes the Council of Ministers to nominate a board, approved by the Parliament, that will provide public accounts for the revenue that the KRG accrues from oil exports, refined products, and oil company bonuses within the framework of the KRG’s oil and gas contracts, the Kurdistan Oil and Gas Law no 22 of 2007 and the Iraq Constitution of 2005.
The Oil and Gas Revenue Fund is an important institutional development in the KRG, and was instigated and sponsored by MNR to bolster transparency in the oil and gas sector.
Under the Law, oil revenues may be allocated for the following categories: the Kurdistan Region’s annual budget; investment spending; oil infrastructure; environmental protection; and a “future generation’s” wealth fund.
The Fund will act as an accounting mechanism and will improve public understanding of how much money the KRG generates from its independent oil exports and refined products. It will also lead to greater public awareness that oil revenues are transferred and audited in line with international standards.
MNR foresaw the need for such a revenue law and inserted a provision in this regard in Article 16 of the Kurdistan Region’s Oil and Gas Law no 22 of 2007.
Under MNR’s initiative, the first draft of the law was submitted to parliament in 2011, but the parliament term ended before that law could be debated.