Al-Ghad

Between the Iraqi Federal Government and the Kurdish Regional Government

Al-Ghad is re-publishing the text of a confidential agreement dated 26th Feb. 2007. We say ‘re-publishing’ for a reason that the confidential Agreement was originally leaked by a source in the ‘Green Zone’, to Raed Jarrar.

The Al-Ghad site has carried the unsigned leaked copy in its Archive since then, thinking it was only an unbinding draft not a signed agreement between two official parties. What has clarified the situation, is the discussion and leaks in a conference organised by the Iraqi Parliament in Dubai on 18th April.

Having checked the matter further we can reveal that the “minister’s resolution” has a long story that explains the infighting in the Dubai conference on 18 April, 07, between the representatives of the Iraqi Federal Government and the Kurdish Regional Government (KRG). According to well informed sources, who have seen the signed version, this “resolution” was really a confidential signed agreement between official parties, for sharing the spoils of the occupation of Iraq.

The agreement is now dead, and both the Iraqi Federal Government and the Kurdish Regional Government (KRG) disown it. The reasons for that are still obscure. Whether it was orchestrated by the US, international companies, local interests, or a combination of them is still not clear. What is clear is there is frenzy to grab Iraqi oil riches depriving the Iraqi people of the sources of there lives.

Still the Agreement throws new light on the current disputes between the Iraq Federal Government and the KRG, and those between the American occupation forces and the Iraqi people. Its disclosure could complicate, still further the passing the Draft Oil Law by Iraqi Parliament, as indicated by the world press.

The NY Times (May 3) reported from Erbil, Iraq, that the new Kurdish concerns about the Oil Law Bill “have created doubts about the bill even before [Iraqi] Parliament is to pick it up for debate”, adding that this development “comes at a delicate moment for Mr Bush, who on Wednesday began negotiations with Congressional Democrats.”

It is apparent now that the dispute between the Federal Government and the KRG is behind the delay in passing the Draft Oil Law, as it should have been before Iraqi Parliament last month, according to Dr Shahrstani, the Iraq Oil Minister. The latter declared in Dubai on April 18, that the Draft Law would be passed to parliament “next week” for approval. But the IHT, reported on Wednesday May 2 “Three [Iraqi] legislators said Wednesday that Parliament had yet to receive the law for discussion”.

One may speculate that the leaked Agreement of Feb 26, marked a temporary reconciliation between the Iraqi Federal Government and the KRG on the Draft Oil Law, probably with American blessing. But it is a bit puzzling why Dr Shahrstani brought the issue into the open in Dubai in April 18. No less puzzling is the KRG’s statements devoid of any reference to the Agreement.

Of course there are those who see it as bargaining before finally reaching a deal; as there are those, like Ben Lando, UPI Energy Correspondent, who guess’s that the passage of the Law “doesn’t quite qualify as one of the benchmarks he [Bush] has set for success in Iraq”; while others, who differ, pointing out that things, both in Iraq and the U.S., have taken a momentum of their own heading towards an expanding black hole.. getting more threatening as time passes. Now the agreement in question, discloses a hidden dimensions to the crisis, to give the lie that the situation in Iraq, the region, and the world is getting better..

The main part of the agreement are five articles, after an introduction citing articles 111 and 112 of the Constitution stating that Oil is the property of the Iraqi People:

Article (1) states that the Draft Law, together with its FOUR annexes, governing principles, model contracts together with the draft law for financial resources, would be presented to Parliament, before the 15 of March, 2007. The statement of the KRG’s Minister of Oil, Dr Ashtee Hawrami, disputed in the Dubai conference those four ‘annexes’, as if they were unknown to him. Indeed in the first paragraph of his statement of 27 April 2007, he expressed the KRG’s:

“serious concern regarding the draft Annexes… that were recently circulated, and that were discussed last Wednesday at a conference in Dubai (“the Dubai Annexes”)!

In any case the KRG has already signed several concessions including the latest with the Emirates-based Dana Gas. (Alhayat 22 April 2007). Of course there was no mention of breach of faith or of contract.

- (2) deals with the draft law of the National Oil Company and those matter s connected with it. It so deals the draft for the Kurdish Region emphasizing that it should be be in agreement with Federal Oil Law and the Constitution.

- (3) defines limitation, and suspension of all operations, granting contracts, in certain areas as defined by the constitution.

- (4) is more to the point as it states: ‘All parties shall desist from concluding any contracts, or entering into new binding undertakings in activities on oil exploration, production in the whole of Iraqi territories until the abrogation of this Law.

- Article (5) is the crux of the whole agreement. This a complete translation:

‘The Federal Government shall strive, in coordination with the Government of the Province [Kurdish Region], to implement all that is necessary to carry out the provisions of the Law and to activate the institutions and the frameworks which are specified by the Law within a period before the end of May, 2007. If this deadline would have been missed, then the Prime Minister of Iraq and the President of the Kurdistan Province shall meet to search for ways to resolve that within the duration of one month, to find a resolution based on one of the two following options:

a. And in case of non-implementation of the article (5) above and until the date of the 31 of May 2007, the two parties shall have the right to promulgate

contracts for development and production according to the constitution and the Draft Oil and Gas Law, and the general principles and the measures of the model contracts (The First Option).

b. The extension of the period referred to in Article above.’

The Original Text of the Confidential Oil Agreement