The Iraqi Oil Ministry threatens the Kurdistan region with 10 escalatory measures - Energy

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  • Negotiations with the Kurdistan Region – Iraq reached a dead end
  • The Ministry seeks to implement Federal Court Decision No. 59, and put it into practice
  • Baghdad aims to regulate Iraq’s oil activity with the aim of turning it into an actual commercial activity
  • Among the measures: Informing the Turkish government not to allow the export of oil from the region’s fields

After the failure of the talks of the Iraqi Ministry of Oil and the Kurdistan Region, on the constitutionality of the oil and gas law for the regional government, the ministry issued a statement today, Tuesday, clarifying its intention to take executive measures for the decision of the Federal Court in this regard.

The Iraqi Oil Minister, Ihsan Abdul-Jabbar Ismail, had revealed two days ago that the talks with officials in the region had not succeeded, after nearly two and a half months of rule, noting that Baghdad’s goal is – only – to regulate Iraq’s oil activity with the aim of turning it into a commercial activity. Actual and not control over the activity of the sector.

The statement of the Iraqi Ministry of Oil, issued a short time ago, said that the suggestion that negotiations with the Kurdistan region – Iraq have reached a dead end, obliges the Federal Ministry and the Iraqi National Oil Company to take measures to implement Federal Court Decision No. 59 and put it into practice.

operational procedures

The statement presented – in detail – a set of practical and procedural steps that it said would help the ministry and the company implement Federal Court Decision No. 59, and put it into practice.

He said that among the most important of these measures are the following:

1. The Ministry of Oil – through the Oil Marketing Company (SOMO) – notifies and informs all international oil companies that purchase crude oil not to deal with the Ministry of Natural Resources in the regional government, and with foreign contracting companies (under production sharing contracts) and not to purchase crude oil The product is from the fields of the Kurdistan region – Iraq. Otherwise, SOMO will file lawsuits against the companies that buy this oil, given that the ownership of the oil belongs to the Republic of Iraq.

2. The Ministry of Oil – and through (SOMO) – informs the oil-purchasing companies that they must pay the amounts resulting from the crude oil price differences for the quantities of oil they have purchased or purchased from the Ministry of Natural Resources, based on the official prices announced by SOMO on the dates of sale and purchase .

3. Coordination between the Ministry of Oil and the Ministry of Foreign Affairs to prepare a message that the Foreign Ministry sends to all countries of the world through Iraqi embassies abroad, in which it is clarified that the ownership of petroleum wealth (oil and gas) is for the Iraqi people, and that the development of this wealth and its revenues belong to all the Iraqi people, and the illegality of dealing Independently with the Ministry of Natural Resources in the region, as well as not allowing the establishment of any kind of activities related to oil and gas by representatives of the region in these countries.

Iraqi Ministry of Oil
Workers inside an oil field in Iraqi Kurdistan (archive)

4. The Iraqi Ministry of Oil informs all oil companies contracting with the Ministry of Natural Resources in the region (production-sharing contracts) that their contracts are invalid based on the decision of the Federal Court, and that they must reconsider their situation, otherwise they will bear the legal consequences of continuing to implement those contracts.

5. The Ministry of Oil informs the Turkish government of not allowing and facilitating the export of crude oil produced from the region’s fields. Otherwise, the Turkish government bears the legal and financial consequences of that.

6. Coordination between the Ministries of Oil and Finance, and the Central Bank of Iraq to notify the banks in which the proceeds of the sale of crude oil produced from the region’s fields were deposited with the seizure and freezing of those financial returns as they belong to the Republic of Iraq and based on the decision of the Federal Court.

7. The Ministry of Oil informs the companies working on laying oil and gas pipelines from the region to outside Iraq, or the companies operating the pipeline system, to stop their work and activities and that what they are doing is against the law.

8. Coordination between the ministries of oil and finance – under the direction of the Council of Ministers – to stop paying any amounts to the regional government for its monthly dues, and not to include any financial dues to the region in the general federal budget for 2022.

9. The Iraqi Ministry of Oil continues to approach the regional government in writing to maintain negotiations and discussions with the Ministry of Natural Resources and not stop doing so on its part, provided that the negotiating delegation from the region is at the appropriate level, not that this delegation is at a lower level on the part of the Ministry of Oil, or that the purpose Its wasting time.

10. Coordination between the Ministry of Oil and the Federal Office of Financial Supervision to review records and documents related to the quantities of crude oil and natural gas produced from the region’s fields, oil derivatives and financial returns arising from the sale of crude oil and gas.

The Iraqi Ministry of Oil concluded its statement by emphasizing that “all these measures require a sincere will, courage and courage based on achieving the public interest and the benefit of all the Iraqi people of all spectrums, components and nationalities, and not condoning the interest of the country and the people for useless individual, factional and political considerations and interests.”

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