Erbil, Kurdistan Region, Iraq (gov.krd) - Kurdistan Regional Government Prime Minister, Nechirvan Barzani, yesterday in Erbil met members of the Iraqi Parliament’s Oil and Gas Committee.

During the meeting, which was also attended by the Deputy Prime Minister Qubad Talabani and a number of ministers, both sides discussed the agreement reached last December between the Federal Government of Iraq and the Kurdistan Regional Government on oil export. They also discussed issues related to oil and gas law, the role of the Committee in following up and monitoring the latest agreement as well as all other oil and gas issues in Iraq.

The Prime Minister reiterated that the Kurdistan Region deals with hydrocarbon file in line with the rights enshrined for the Region in Iraq’s Federal Constitution. He said that the Kurdistan Regional Government, throughout the phases of exploration, production and export of its oil, has not committed any unconstitutional act. He pointed out that Kurdistan Region oil policy is fully based on the Region’s constitutional rights. For this reason, he urged the Committee to monitor, observe and follow up the entire process in the Kurdistan Region.

Prime Minister Barzani stressed KRG’s commitment to the agreement reached with the Federal Government of Iraq, hoping to reach a full agreement with Iraqi Prime Minister Haider Al-Abadi on settling all the outstanding issues between the two sides. The Prime Minister urged that the Iraqi Parliament’s Oil and Gas Committee to play a role as a third party, monitoring the implementation of the agreement. He expressed Kurdistan Regional Government’s willingness to cooperate and coordinate with the Committee in any manner that it deems appropriate.

The Head and members of the Iraqi Parliamentary Oil and Gas Committee expressed their pleasure for visiting Kurdistan Region, where they held a number of meetings. They called for greater cooperation and coordination between their committee and the Kurdistan Parliament Oil and Gas Committee as well as the Kurdistan Regional Government’s Ministry of Natural Resources and other relevant bodies. They stressed that the Committee will play an efficient role in helping resolve the outstanding issues between both regional and federal governments in order to serve the public interest of Iraq and the Kurdistan Region.

About the concern of oil of Kurdistan Region and its policies concerning the oil Asia Press had an interview of which main points follow:

Relating how to commence the oil works Dabbagh said at the time of Saddam Hussein there was only one active oil center in Kurdistan and for some reasons he blocked all oil wells of Kurdistan Region by concrete. After his withdraw Kurdish activists reopened them by exploding the concrete and tried oil economy enjoyed good advances.

In a response to a question about being obedient of Kurdistan Region to Iraq codes while stating the ups and downs of the relations between KRG and central government. Dabbagh Said: we considered the constitution of Iraq according which we could provide the budget of the Region. When the Iraq government cut the budget of the Region, before that we have come to conclusion to export the oil through the present oil pipes stretching from Kurdistan to Turkey and this way the production of oil will reach 550 thousand barrels a day. Today the oil map of the world has laid on Kurdistan Region and Kurdistan of Iraq will draw this map. In addition dealing with the potentials of Iran to import oil from Kurdistan specially to export oil to Kermanshah and its being delivered in another place Dabbagh said they to export oil they are joined to Jeyhan port in Turkey and we export 200 thousand oil barrels through this way. He added; in my opinion the policy come from the oil pipelines and now if we could not export oil to the world we would not have this place. Presently we are observing the descendant of the oil price from $100 to $60 we witness that policy has entered it. There is no world war not export oil.

After explicitly stating that in oil policy we are obedient to the Region interests Dabbagh said: according to the constitution of Iraq we work, those cases I primarily mentioned relate to the Iraq government. According to this we decide and never interfere, therefore if we have an independent government we will talk then what policy should we take to Russia, USA or even Iran.  

About the outcome of Erbil-Baghdad in recent days he said: we have come to an agreement to continue this bilateral negotiation. At the beginning we will export 250 thousand oil barrels from the Region as well as 350 thousand from Kirkuk. In addition $1 billion dollars from oil income has been assigned to Pishmerga forces to defend till devote one of its actions to preserve oil fields. 

Baghdad, Iraq, (KRG.org) - Within three days of arrival in Baghdad, the Kurdistan Regional Government delegation headed by Prime Minister Nechirvan Barzani, concluded an agreement with the Federal Government of Iraq. Prior to leaving Baghdad, back to Erbil yesterday, Prime Minister Barzani spoke with the media about the meetings and results of the negotiations.

The KRG Prime Minister highlighted the meetings of the past two days, saying, “During the past two days we have been here in Baghdad in order to address issues between the Kurdistan Region and Baghdad.  We conducted several meetings with the Iraqi Prime Minister, the Oil Minister, and other ministers. Different teams focused on different negotiations. We completed our visit today.”

Speaking about the conduct and atmosphere at the meetings the Prime Minister said, “I would like to say the meetings were generally positive. We saw a real desire by the Iraqi Prime Minister, the Iraqi Oil Minister, and all other ministers in Prime Minister Abadi’s government to resolve important issues with the Kurdistan Region. I want to emphasize and reiterate that our preference from day one was to resolve all issues through dialogue.  We preferred this option and believe it is the best option.”

Regarding the agreements, Prime Minister Barzani said, “After the former Iraqi Prime Minister unilaterally cut the share of the Kurdistan Region from the Iraqi budget we have attempted to resolve the issue through dialogue.  Fortunately, we reached an agreement with Prime Minister Abadi and his team on a number of issues.  We believe the agreement is transparent and serves the interests of both the Kurdistan Region and Baghdad. Both sides came out of these negotiations successfully."

Regarding the details of the meetings, the Prime Minister said, “The agreement is as follows: The KRG will deliver 250,000 barrels of oil per day from oilfields in the Kurdistan Region to Baghdad, and we will assist them in exporting Kirkuk oil. In turn, the Federal Government of Iraq will provide the Kurdistan Region 17 percent share of the federal budget. We emphasized that the amount received in the past was never 17 percent, it was always less.” 

On the issue of the Peshmerga forces dues which was one of the main unresolved issues, Prime Minister Barzani said, “Prime Minister Abadi offered his respect and gratitude to the Peshmerga forces, especially in the struggle and sacrifices they have been making on the battlefield fighting against ISIS terrorism. Baghdad agreed to allocate 1 trillion 200 billion Iraqi Dinars for the Peshmerga.”

Prime Minister Barzani explained details of the agreement, saying, “The current agreement is not the final agreement, but we believe it to be a good start. There are other issues we should discuss in the coming period and we hope to reach agreement on them, too. This is a good start for both sides and, hopefully, we will resolve all outstanding problems and obstacles within a period of six months or so.

“I can say that, in general, we are pleased with this agreement and consider it a gain for all parties. Given the problems between Erbil and Baghdad, we can say we have come a long way.  What we have seen this time in Baghdad is a desire by the Iraqi Prime Minister to tackle these problems. This encourages us to move forward faster. As I said, our priority is to address and resolve our problems with Baghdad.”

Regarding external pressure, particularly from the United States and other parties on the KRG delegation to reach agreement with Baghdad, the Prime Minister said, “There was no pressure on us.  What we have achieved was through the desire of both Baghdad and Erbil to reach a mutually satisfying agreement. The United States, United Kingdom, and the United Nations role is to encourage both sides to negotiate to reach an agreement. They did not interfere in the negotiations and did not exert any pressure, even in the organization of the meetings. As you know, Iraqi Oil Minister Dr. Adil Abdul Mehdi visited Erbil recently and met with Deputy Prime Minister Mr Qubad Talabani and I.  We agreed then to visit Baghdad to begin these talks.”

Regarding the amount allocated by the Iraqi Government for the Peshmerga forces, whether it was taken from the Kurdistan Region’s portion of the federal budget, Prime Minister Barzani said, “The amount agreed for the Peshmerga forces will be from outside the Kurdistan Region’s share of the budget, meaning it will not be from the 17 percent allocated to the Kurdistan Region. They agreed the Peshmerga forces are part of the Iraqi defense system. This agreement is very important because after 11 years of negotiations Baghdad agreed to the proposal to allocate a portion of the national defense budget to the Peshmerga forces.”

In response to a question, KRG Deputy Prime Minister Qubad Talabani emphasized, "the agreement reached between the Federal Government of Iraq and the Kurdistan Regional Government works in favor of all sides and I believe that everybody will support this agreement."

Prime Minister Barzani thanked the civil servants, businessmen, and contractors in the Kurdistan Region for their patience with salary and payment delays. He said, "We have already received a payment and are receiving another one.  We hope to overcome the issue of public service salaries by January."   

Regarding exporting oil from Kirkuk oilfields through the Kurdistan Region’s pipeline, the KRG Prime Minister explained that, practically speaking, Kirkuk oil can flow only through the Kurdistan Region’s pipeline. "We have agreed to export 300 thousand barrels per day. The technical process may start this week."

Prime Minister Barzani also noted, "the process of exporting Kirkuk oil through the Region’s pipeline is in the interest of both the Kurdistan Region and Iraq. He said the Region would not charge the Iraqi federal government for the export. The Region works within the framework of the Constitution of federal Iraq. This gives the Kurdistan Region opportunity to coordinate approaches to oil export and solve issues without stress." 

Regarding the oil exported by the Kurdistan Region independently, the Prime Minister said, “We continue to export oil that we have, but we will first use it to meet the Region’s domestic fuel requirements. We will export the rest after meeting domestic demand."     

Regarding the agreement between the Kurdistan Region and Baghdad, Prime Minister Barzani explained, "The budget law is for one year. When we came from Erbil we knew that we will not resolve all issues in a meeting or two. We thought our visit called for a strategy to resolve the issues.  We have now set the strategy. The agreement we have now concluded will open the door to settle all issues within six months to a year.

“What is important is that we managed to implement two important things. First, the sanctions imposed in Iraq’s general budget law on the Kurdistan Region’s share of the national budget have been removed. Second, we have reached agreement on oil export, the Kurdistan Region’s budget, and the Peshmerga forces’ budget.

"The other issues are article 140 of the Iraqi Constitution, incentives for Peshmerga forces, and other outstanding issues for which a period of time will be decided for their settlement. There will be talks also about what is owed to the Kurdistan Region from the 2014 budget, which is 16 trillion Iraqi dinars, as determined by the Iraq Ministry of Finance. All these issues cannot be solved in one meeting, more meetings are needed."

While emphasizing that all differences cannot be solved in one visit or meeting, Prime Minister Barzani reiterated that the agreement concluded with Baghdad paves the way for resolving the issues within six months to one year.

Regarding project loans and mortgages for citizens, Prime Minister Barzani reiterated his government’s commitment to continue support for loans and mortgages.

Regarding guarantees the Iraqi Government will not cut the Kurdistan Region’s share of the national budget again, the Prime Minister explained, "There are no guarantees that the Iraqi government will not cut the Kurdistan Region’s share of the budget. We should not forget, however, that if they cut our share, we hold a key to their oil export. We do not, however, wish to talk in such language, we hope this language is over. We wish to open a new page and avoid using the language of threats."

Regarding Peshmerga forces participating with the Iraqi army in liberating ISIS-controlled territory, the Prime Minister explained, "The Peshmerga forces are now fighting on a 1,100 kilometer-long frontline. Iraq’s Prime Minister lauded their efforts. In fighting a global terrorist organization, what the Peshmerga forces are achieving is most significant and serves the Kurdistan Region, Iraq, and the whole world." 

Regarding the Iraqi government’s commitment to implementing the agreement, the Prime Minister said, "the agreement has been approved by the Iraqi Council of Ministers and it has become a decree. The Iraqi government has expressed its support to the agreement. On our part we are implementing the agreement. In Baghdad, we observed willingness. We would like to take every opportunity to reach a solution that serves both the Kurdistan Region and Iraq. However, to what extent it will actually be implemented, we will have to see that later."

Erbil, Kurdistan (KRG.org) – Prime Minister Nechirvan Barzani yesterday conducted a lengthy meeting with the Kurdistan Parliament regarding natural resources policy and budgetary matters.

Kurdistan Parliament Speaker Dr. Yousif Mohammed, heads of the parliament’s political blocs, the Oil & Gas Committee, and the Legal Affairs Committee all participated in the session. The Prime Minister, Minister of Natural Resources Dr. Ashti Hawrami, and KRG Council of Ministers Legal Advisor Dr. Amanj Raheem answered questions from Members of Parliament and discussed oil export and the road forward.

An excerpt of the Prime Minister’s address is below, as well as his response to two questions from Members of Parliament.

Prime Minister’s address

“The issue of energy is highly important to us. It has no relations to party politics, nor is it a personal matter. It is related to the Kurdistan Region in general and in reality it is quite a sensitive issue and it is essential that the Parliament, in its role as the legislative institution, be fully informed on the details of this issue. Our policy has been created within the framework of the laws that have been established by the Kurdistan Parliament and hence the parliament should be privy to all the details related to this issue.

“The big question is: ‘who will control the oil’? Counterparts in Baghdad did not identify ‘right’ or ‘wrong’ KRG actions – they just wanted to control the issue completely. We do not view this issue as a path towards Kurdistan’s independence, but rather as the expression of our constitutional rights. These rights are the constitutional principles upon which we agreed when we returned to Iraq in 2003 and 2004, and they have to be implemented in Iraq.

“If Baghdad today agreed with us upon the issue of oil revenue sharing, one of Iraq’s most important laws, it would lead to the resolution of a number of obstacles related to this issue. However if I speak frankly, Iraq’s federal government increases the sovereign expenditures year after year without the Kurdistan Region’s knowledge, and this is reduced from Kurdistan’s share of the Iraqi budget.

“At a time when Baghdad regularly increases its sovereign expenditure, the burden placed upon the KRG increases and citizens’ expectations of the government, in terms of services, are considerable. This is the right of citizens, and they are fully entitled to these demands. In addition, we have a large number of civil servants on the government payroll in Kurdistan. For your information, 850 billion Iraqi dinars per month are spent on the salaries of civil servants. This is a very large figure and it needs to be addressed. It cannot continue in this way.

“In order to reach international standards…we need more than $US 31 billion to meet the demands for infrastructure in Kurdistan such as highways and roads, bridges, schools, hospitals and other essential needs.

“We are determined to carry out our constitutional rights and to ensure that we receive from Baghdad the full 17% of the Kurdistan Region’s share of the budget.

“In last week’s session we provided solid clarifications. And today we have come here because without doubt esteemed Members of the Kurdistan Parliament, as members of the legislative institution in Kurdistan, have many questions that they would like to see answered. The aims of Members of Parliament are to determine whether the KRG’s oil policy will be successful or not, as well as to understand the government’s future plans. This includes the manner in which the KRG plans on spending the revenue we receive.

“We want to address these questions openly and transparently in Parliament today so that we can reach a mutual consensus regarding the energy issue in Kurdistan. And just as Speaker of Parliament Dr. Yousif explained, we want energy to be a national issue and to resolve doubts about its transparency. We are ready to answer these questions in front of the Kurdistan Parliament, as it is our legislative institution, and so we are ready to attend any time to be questioned and to be held accountable.

“We fully believe that the achievements of the KRG are in the best interest of the Kurdistan Region, and are in accordance with the Iraqi Constitution. We are confident. But the task is not easy; in fact, is it quite difficult.

“The main requirement for the success of this process is a united stance among all of Kurdistan’s political parties on this issue.”

Responses to questions from Members of Parliament

In response to questions from Members of Parliament regarding the position of the United States, Prime Minister Barzani stated that the policy of the United States is and has been to support both Baghdad and Erbil in efforts to reach an agreement, as has been reiterated by American diplomats on every occasion. The KRG wished that, when considering the oil issue, the United States had pointed to Baghdad’s unilateral and unconstitutional decision to cut the Kurdistan Region’s share of the budget. The KRG resorted to exporting oil following Baghdad’s decision to cut the budget of the Region, an act that has affected the payment of salaries of civil servants. The KRG has been forced to pursue a solution because of this action.

In response to questions regarding the agreement between the Kurdistan Region and Turkey, the Prime Minister stated, “We should not view this issue as political. We have held meetings with our Turkish counterparts over a lengthy period of time, and it culminated in a protocol for long-term cooperation on energy issues and is subject to extension. The agreement was a result of a long series of meetings. We do not consider this to be a political move to divide Iraq. That is not the case.”