Export of federal oil and gas through the Kurdistan Region
Last week, Iraqi and Turkish officials announced details of plans for oil from the southern Iraqi provinces to be transported to Turkey and Europe.
Prime Minister Salih said he welcomed the recent discussions between Turkish authorities and the federal government on the transportation of oil and gas from the southern Iraqi governorates to Turkey, via Zakho in the Kurdistan Region.
“I am encouraged by news that the federal government is engaged in active discussions with the government of Turkey in respect of export of crude oil and gas,” he said, adding, “The KRG, in its role as the oil and gas aggregator within Kurdistan Region, is ready to discuss all options with the federal government, including full cooperation on construction of new pipelines and facilities for export of oil and gas to Turkey and Europe.”
KRG oil and gas domestic and export policy
Prime Minister Salih emphasised that KRG policy is, under its powers set out in the 2005 federal Constitution, to manage production of oil and gas from new fields located wholly in the Kurdistan Region to generate export revenue for all of Iraq.
“That derived export revenue will be shared throughout Iraq in accordance with federal revenue sharing principles set out in the Iraqi Constitution," said Prime Minister Salih.
On oil and gas activities in areas adjacent to the Kurdistan Region, Prime Minister Salih said, “It is the KRG policy to ensure that oil and gas and electricity generation requirements are kept entirely separate from the resolution of boundary matters.”
He continued, “The KRG has agreed to assist with the reinstatement of electricity import from Turkey to Mosul governorate, and it is our policy to cooperate with all neighbouring Iraqi provinces to minimize gas flaring and to utilise the available proven natural gas reserves in these areas to solve the chronic power generation problems of Kirkuk, Mosul and Salahaddin.”
He added, “Our policy of domestic use of oil and gas in these areas is the same as the oil and gas utilisation policy originally set out by the federal authorities.”