Baghdad does not supply the Region with its entitlement to refined products, therefore the KRG trades quantities of crude and condensate and fuel oil in a barter arrangement for diesel, kerosene and benzene. This trade counts as part of the Region’s 17 percent entitlement and is fully documented and accounted for. It provides real help to Iraq’s citizens.
In any case, according to the federal Law of Anti-Smuggling of Oil and Oil products (No. 41 of 2008), “it is prohibited to carry oil and oil products by any land, marine or river means of transportation unless getting an official permission from the Ministry of Oil or the relevant entity in the region.”
The “relevant entity” in this case is the Ministry of Natural Resources in Kurdistan, which issues export licenses and controls and documents the process in a manner consistent with the principles of the Extractive Industry Transparency Initiative (EITI).
The KRG will continue to legally and professionally export oil and products, in line with its rights under the Constitution.
BUDGET AND REVENUE ISSUES
After decades of oppression, dictatorship, and war, revenue sharing, power sharing and decentralization are the obvious keys to Iraq’s future unity.
Thus, our regional government believes in the Constitution as it is, not as its opponents would wish it to be.
Article 111 of Iraq’s constitution clearly states that oil and gas belong to “all the people of Iraq in all the regions and governorates.”
Very well written! And top of all above, SOMO has collected the moneys for exporting all oil including the one from KRG territory. Unilateraly, SOMO and alikes do not honor the contracts with the OIC's operating in Kurdistan, but retain the money. Can you understand that many IOC's are alarmed and are calling this behavior for theft or even harder words?
The harsh language used by the Oil ministers in Baghdad may scare small oil companies and now with the consolidation of IOC's in Kurdistan, there is no way that Gazprom, Exxon and alikes will fell down for the rod of Baghdad.
Have you not learnt that capitalism and IOC's have a very good and large memory? They will never forget nor forgive such behavior.