ASHTI HAWRAMI GAVE ‘AL HAYAT’ INTERVIEW IN MUNICH (GERMANY)

Ashti Hawrami talks about 45 billion barrels of oil reserves in Iraqi Kurdistan 

July 11, 2013 – shafaaq.com – ERBIL-Hewlêr, Kurdistan region ‘Iraq’,— Minister of Natural Resources in Kurdistan region, Ashti Hawrami said that the rights of the oil companies operating in the region exceeded 3.5 billion $, while the estimated oil reserves in Kurdistan region of more than 45 billion barrels.

Hawrami said in an interview with” Hayat” newspaper “the negotiations with Baghdad will be in accordance with the law which determines the financial dues to Kurdistan Region from federal revenues”.He said that the provincial government informed Baghdad earlier this year that the investment companies demands for more than 3.5 billion $ and these are constitutional entitlements. He denied accusations of Baghdad to the region to export crude oil without coordination with the Centre, adding that “exporting was under an agreement with Baghdad to export our production under the requirement of deducting 50 % of its imports to pay dues of the companies and the other half goes to the state treasury but what happened was capturing all imports“.

He rejected rumors of smuggling and said, “There is no smuggling of oil and we do not accept these accusations and what has been claimed is a legal entitlement and came because we prevented them from seizing it”. He criticized the current method for the management of the country’s imports, as “wealth is being managed according of the former regime and laws imposed on us by force from the federal government”.

He demanded “the central government with 55 million barrels that we didn’t receive of fuel for domestic consumption from 2004 to 2012.” Hawrami stressed the need for the enactment of the oil and gas law, and expressed his belief that “this law, which Kurdistan seeks to pass in accordance with the Constitution, will be a key for all the contentious issues between the two sides in the oil sector”.

Prime Minister , Nuri al-Maliki said during a joint press conference with regional president , Massoud Barzani, the lack of differences between the federal government and the regional government, but the difference in views regarding the Constitution.“Most of the differences arising from non-political application of the Constitution in relation to the distribution of proceeds,” he added.

Article 112 of the Iraqi Constitution stipulates that the federal government manages oil and gas extracted from current fields with the governments of the producing regions and provinces, to distribute its imports fairly in a way that commensurate with the population distribution with a quota for a certain period for the affected provinces.

The article stressed that the actual productive federal government and the regional governments together develop the necessary strategic policies to oil and gas wealth, so as to achieve the highest benefit to the Iraqi people.

Hawrami undermined the importance of the pressure exerted by Baghdad on oil companies operating in the region to discourage them from the implementation of contracts.He pointed out that “this does not affect the work of these companies and they are ready to continue despite the late payment of dues”.He estimated crude oil reserves in Kurdistan region except the disputed areas at 45 billion barrels that can be increased, but initial gas estimates indicates to 100 or 200 trillion cubic meters. On the plans for his ministry to raise the production during the coming period, he said, “The aimed production in 2015 is million barrels per day until it reaches in 2019 to two million barrels per day, either filter crude and produce hydrocarbons as it is expected to rise to 150 thousand barrels per day and can be up to 250 thousand.”