KRG Demands Say Over Kirkuk Oil Contracts

The ministry said that while it welcomes the experience and technical expertise that international oil companies can bring to mature fields such as the ones around Kirkuk, “the Constitution requires joint management with and the cooperation and approval of the producing governorates and regional governments in any management or policy decisions regarding the Kirkuk field”.

So far, the KRG has not been consulted on this matter.

The Kirkuk field comprises three main structures: Khurmala, Baba and Avana.

The Khurmala structure lies in Erbil province; it was a non-producing field at the time of the Constitution. The ministry said, “Its management falls under the exclusive authority of the KRG and is currently being exploited for oil refining needs of the Region.”

The producing Baba structure lies in Kirkuk province. “Both the governorate of Kirkuk and the KRG must also be present with the federal government in any discussions and agree over the Baba structure’s development,” the ministry said.

The producing Avana structure lies within the district of Makhmour, whose administrative status is expected to change soon so that it rejoins Erbil province. “The appointment of IOCs and any operations undertaken by them in the Avana structure would thus need the cooperation and approval of the KRG,” the MNR said.

“The Kurdistan Regional Government requires the federal Oil Ministry and the North Oil Company to respect the country’s Constitution and sit down soon with all the relevant parties to determine how best to enhance and revitalise the present Kirkuk fields, so that the people of Iraq will benefit from the extra revenues in a timely manner, as the Constitution obliges,” it added.

“In the meantime, the KRG expects that IOCs refrain from any activities that may be in breach of the Constitution.”

(Source: KRG)

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