19/05/2010Kurdistan awaiting an official letter from the federal financial to start exporting oil
Erbil, The Minister of Natural Resources in the Kurdistan Regional Government drastically, Wednesday, that the province will resume export of oil from fields immediately upon receiving the official letter from the Federal Ministry of Finance, after Baghdad's approval to pay the dues of foreign companies operating in the region, which was bone of contention between the two sides.
Hawrami said the agency Kurdistan News (Akaniwz) "The Kurdistan Region will begin exporting oil from the fields after the Federal Government approved the payments to foreign oil companies operating in the region, and now await the receipt of an official letter from the Finance Ministry in Baghdad on the mechanism of payment to begin exporting."
The Federal Government has acknowledged, on Tuesday, signed an agreement with the Kurdistan region of Iraq allow the resumption of oil exports from the region and that the Baghdad payment of dues to foreign companies that contracted with the region after an audit my account.
The minister pointed out that "The federal government approved the proposals made by the region, but remains to be determined by the Ministry of Finance in Baghdad mechanism for how payments to foreign companies."
The Hawrami that "Start the export of oil from the region would be temporary until they reach a final agreement on the outstanding problems between the two sides."
Baghdad had opposed oil contracts between the Territory and foreign companies without reference to the government, while the territorial authorities insisted that Baghdad pay dues of those companies as the profits will go to the federal government in Baghdad, not to the Government of the Territory.
The Hawrami that "the region will pump at the outset of about 100 thousand barrels a day."
The region has begun to export oil from its territory last June for the first time in its history from the fields of "Taq Taq" and "Tawke" a rate of about 100 000 barrels per day.
But the government of the province have returned and stopped the export of oil produced from fields in the region last October, she will not re-export of oil has not paid the federal government in Baghdad benefits the companies that contracted with the territorial authorities.
Iraq approves agreement to resume Kurdish oil exports
May 19, 2010
The Iraqi government said it has approved an agreement that would allow the semi-autonomous region of Kurdistan in northern part of the country to resume oil exports, an Iraqi newspaper said on Wednesday.
The agreement between Baghdad and the Kurdish Regional Government (KRG) stated that the Ministry of Finance in Baghdad will pay the foreign oil firms operating in Iraqi Kurdish region their expenses, the al-Mashriq newspaper quoted government spokesman Ali al-Dabbagh as saying.
Since the 2003 U.S.-led invasion, the Kurds have independently signed nearly two dozen deals with western oil companies. Baghdad maintains the deals are illegitimate because they bypass the central government.
In June 2009, the KRG started oil exports of around 100,000 barrels per day (bpd) for the oil fields of Taq Taq and Tawke in northern Iraq, but were suspended a few months later when the central government refused to pay the foreign firms and said the Kurds should pay from their share of the national budget.
The latest agreement will pave the way for the KRG to resume oil exports through the national pipeline to the Turkish port of Ceyhan, the paper said without setting a date for resuming the exports.
However, Asim Jihad, spokesman of the Iraqi Oil Ministry was also quoted by the paper as saying that the payment of the Iraqi government does not cover the foreign companies' profits and also does not mean the central government accepted the production- sharing deals signed by the KRG with the companies.
On Tuesday, the Iraqi Oil Ministry said that Iraq's oil exports in April was 53 million barrels, bringing in revenues of 4.222 billion dollars. The exports were mainly extracted from Iraq's southern fields and fewer amounts from oil fields of Kirkuk in northern Iraq.
Iraq mainly depends on oil revenues as the country has the world's third-largest proven oil reserves estimated at 115 billion barrels, following Saudi Arabia and Iran.
Source: Xinhua
