In these circumstances, and until further notice, Article 112 legally precludes the Federal Oil Ministry and SOMO (or any other division of the Iraqi federal government) from selling oil from Iraq without the approval of the Kurdistan Region, as a producing Region. Oil sales by the Federal Oil Ministry, SOMO, or any other division of the Iraqi federal government are therefore in violation of the Iraqi Constitution and international law, and may be outside the scope of their authority.
The KRG notifies all persons that have purchased or may purchase oil or gas from any division of the Iraqi federal government, including the Federal Oil Ministry or SOMO, that the KRG will consider such buyers and those who have facilitated shipments on their behalf or on behalf of SOMO as colluding in, supporting, or facilitating violations of the KRG’s rights (including under the Iraqi Constitution and/or international law), unless such buyers pay the KRG 17% of the purchase price, reflecting the share to which the KRG is legally entitled.
Buyers who fail to make such payments to the KRG will be facilitating the Iraqi federal government’s breach of the KRG’s rights and passing to the Iraqi federal government monies that rightfully belong to the KRG. Such buyers will also run the risk of paying funds to the Iraqi federal government pursuant to arrangements that may be outside the authority of the Iraqi federal government under the Iraqi constitution.
The KRG will take such legal action against buyers of oil from the Federal Oil Ministry and SOMO (or any other division of the Iraqi federal government) as may be necessary to protect the KRG’s constitutional and legal rights.
(Source: KRG)



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