Al-Ghad

KRG Prime Minister Interview on Oil Law

Following is a transcript of the interview with Sarbaz Hawrami, Prime Minister of the Kurdish Regional Government (KRG), with their local TV (Zagros) and his points of view regarding the new Revenue Sharing Law and interpretation of some disputed items in the Petroleum Law.

Minutes of meeting with Serbaz Hawrami at Zagros (local TV)

25/06/2007

* What’s the last agreement with central government about KRG part from general Iraq income? And what insure that the central government will not delay it like what’s happening now?

- We finalized the issue with them, the KRG will get 17% from Iraqis general income and to prevent what happened previously like the Iraq central bank don‚t have financial liquidity or they cant work probably because of insecure situation in Baghdad, to prevent all of these excuses we decided to open a branch of Iraq central bank in Kurdistan Regional Government capital (Erbil city) and our share directly will come to this branch under supervision of central Finance Ministry.

* About the Oil and Gas low we hope that you reach positive stage?

- Yes we are very optimistic, at the latest meeting between Iraqi Federal Government, we agree and sign on the draft of Iraqi Oil and Gas low after long and hot arguments and within coming days it will be send to Parliament for approval.

* Can you give as an idea about the last draft content regarding the authority of Kurdistan Regional Government to control the oil fields within the region?

- The KRG have a complete authority to sign contracts with foreign companies for unexplored blocks and undeveloped fields within the border of KRG.

* What’s the role of Iraqi Oil and Gas Ministry regarding contracts signed by KRG?

- Actually the contracts will be approved in two stages: firstly the KRG will sign a preliminary contract with the company and it will send to Baghdad for study and scrutinize only the technical issues by independent committee and they must respond us within 60 days incase of agreement and there was no item to be modify the second stage will apply and KRG will sign the final contract with the company. If the committee didn‚t respond us within 60 days the KRG have the authority to sign the final contract and this item submitted in the draft.

* There is any qualification for companies want to made contracts with KRG?

- Yes, the company must have at least 5-7 years of experience in Oil fields and the most important thing is the financial situation of the company because the new techniques these days are very expensive.

* Mr. Serbaz what about the companies who came to the region and made contracts with KRG at absence of new Iraqi Oil Law like DNO, DANA Gas, etc..?

- All of these companies have legal contracts with KRG and the revenue of these contract will return for all Iraqi people, about the contract of DANA Gas its completely another issue and we face objections from people of Baghdad before they understand the contract, I want to declare that we are not going to export the Gas the aim behind this contract is only to supplying the Gas for electric power station in Kurdistan.

* What about some disputed areas of Kurdistan which they are belong to cities out of Kurdistan border depending on previous regime maps and they contain huge oil reserve?

- When the item 140 of Iraqi constitution applied these places will be under authority of KRG and the item 140 is nonnegotiable constitute.