It does not state that the oil and gas belongs either to the federal Ministry of Oil or the illegal and unaccountable monopoly of the state oil marketing organization (SOMO), which was created by Saddam Hussein.
Nevertheless, the ownership of the oil and gas in Iraq is without prejudice to its management and to the distribution of its revenues.
And nowhere does the Constitution state that either the management or export of oil and gas from Iraq are the exclusive preserve of the federal authorities.
The KRG’s opponents know this, which is why their statements are often cynically designed to deceive and mislead the general public.
The threat to cut the KRG’s share of the federal budget therefore is not only senseless but empty.
The federal oil minister is stepping well beyond his remit in speaking about the federal budget, creating yet another smokescreen for the incompetency of his ministry and of the federal administration.
Had it not been for the federal government’s obstructionist policies, the Kurdistan Region could now be exporting 500,000 barrels per day or some $18 billion per year. That is more than enough to cover the KRG’s annual budget of around $10 billion and provide extra billions for the people of Iraq.
This is in addition to the wasteful, costly and environmentally damaging oil ministry policy of gas flaring which has cost Iraqis an estimated $10 billion in lost revenue every year since 2003.
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.