Ministry of Oil: Chevron "Should be Ashamed"

By John Lee.

The Iraqi Oil Ministry has re-confirmed that Chevron is barred from contracts with the Federal Goverment in Baghdad, and says the company "should be ashamed of their action" in dealing with the Kurdistan Regional Government, which it accuses of smuggling.

The Ministry issued the following statement on Wednesday:

Chevron Oil Company announced that it signed contracts with the ministry of natural resources in Kurdistan province by buying most of Indian Reliance Company shares in 19/7/2012. And the company did that without gaining the approval of the oil ministry and the federal government while they knows the judgment of the oil ministry & the federal governments which considers that all the regional government signed contracts are illegal because they are contrary to the constitution of the republic of Iraq for 2005, as well as the rules of Kurdistan that gives the foreign contractors big shares of produced oil which is considered as a waist of the national fortune.

The oil ministry disclaims to the following:

First: the federal oil ministry is surprised of the attitude of Chevron whom claimed to adopt the principles of transparency, public and ethics of oil industry As well as the international American & European companies. Which is contrary to Chevron’s action in signing contract with the ministry of natural resources of Kurdistan in secret & suspicious way far from the principles of the international oil companies.

Second: Chevron and the whole world knows that the produced oil of Kurdistan does not be delivered to the federal oil ministry – as the deal – but smuggled to the nearby countries like Iran and Turkey by the organized smuggling networks. And no one knows the quantities of the smuggled oil and their incomes.

According to the previous, the reputation of Chevron and the other companies will be examined today and we are sure that they will fail and should be ashamed of their action. As well as according to the oil policy which is based on the provisions of the constitution, the oil ministry decided to cancel the qualification of Chevron and prevent them from signing any contract with the federal oil ministry and its companies especially the up streaming sector unless they cancel the mentioned contract.

2 Responses to Ministry of Oil: Chevron "Should be Ashamed"

  1. Re da Caste 1st August 2012 at 18:31 #

    Exxon, Chevron, Total, soon Gazprom, besides Genel, GKP, DNO, etc. The Iraqi oil minister sounds like an old communist. Most of the companies are abandoning the starving service agreements and opting for PSCs. Any wise person would now have realized there is no way back and they have to accept realities. Weak up!

  2. Mustafa 3rd August 2012 at 10:00 #

    I think the Minister of Oil should be ashamed. All these companies already aware that the central government is going to ban them from the rest of Iraq. However, they still choose the KRG. Because they would like to get rid of the corrupted SOC, MoO and the poor conditions... Getting 1 is better than not coming 10...