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KRG petroleum law to go to Kurdistan
Parliament
23.10.2006
Office of the KRG Spokesman |
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Erbil, Kurdistan
Region (Iraq) , -- The Kurdistan Regional Government
today published a draft of the petroleum law for
Kurdistan. This draft will be forwarded to the
Kurdistan Parliament for its consideration. The
Minister for Natural Resources, Dr. Ashti Hawrami,
today issued three media releases addressing
different aspects of the law, including revenue
management and the KRG policy on the Kirkuk oil
fields.
The draft has benefited from further comments and
suggestions to the two previous published drafts.
Media Release: KRG Final
Draft Petroleum Act
KURDISTAN REGIONAL GOVERNMENT - Office of the KRG
Minister of Natural Resources - 22 October 2006
Today, the Ministry of Natural Resources of the
Kurdistan Region of Iraq published a final draft of
a Petroleum Act for the Region for consideration by
the KRG Parliament.
“Though the draft Petroleum Act is for the Kurdistan
Region, it is indeed a model for Iraq,” said Dr.
Ashti Abdullah Hawrami, Minister for Natural
Resources. “It is modern, investor-friendly, and
transparent. It is a great step forward to the
recovery, and prosperity, of Iraq.”
The Petroleum Act is designed to attract private
investors with competitive production sharing
agreements (PSAs). The Ministry has already issued
four PSAs in the Kurdistan Region, and expects a
large scale licensing round following the passage of
the Act.
Under the Constitution of Iraq, which entered into
force earlier this year, Regional authorities have
significant control over the management of petroleum
resources, and are required to share revenues
throughout the country. The Constitution outlines a
petroleum revenue sharing formula based on
population and the degree of damage done by the
previous regime to parts of the country.
“This draft Act also outlines an unambiguous
approach to revenue sharing”, said Minister Hawrami,
“which we expect the federal Council of
Representatives to adopt, by law, in compliance with
the Constitution of Iraq.”
The draft Act anticipates that the federal
government will restructure the petroleum industry,
and pass a nationwide petroleum law that encourages
private investment, so that revenues from new
fields, as well as existing fields, can be shared
throughout Iraq. In this way, the revenues from
petroleum, and the relative depletion of the
reserves around the country, will be equitable for
all Iraqi citizens.
“The Kurdistan Region hopes that the federal
government will adopt our approach, which will rely
heavily on the private sector, and a risk-reward
structure”, Minister Hawrami added. “The sooner we
can attract investment to all of Iraq, the larger
the pool of revenues for Iraq-wide sharing. This
will benefit all the Iraqi people.”
The full text of the draft Petroleum Act, and
explanatory memorandum, can be viewed in English and
Arabic at:
Draft Kurdistan Region Petroleum Act - PDF File
Explanatory Memorandum - PDF File
Other features of the draft Act include a
requirement that petroleum contractors comply with
the principles of good corporate citizenship in the
UN’s Ten Principles of the Global Compact, and a
requirement that the Government of the Kurdistan
Region comply with the transparency principles of
the Extractive Industries Transparency Initiative.
Media Release: Kirkuk Oil
and the KRG Final Draft Petroleum Act
KURDISTAN REGIONAL GOVERNMENT - Office of the KRG
Minister of Natural Resources - 22 October 2006
Today, the Ministry of Natural Resources of the
Kurdistan Region of Iraq published a final draft of
a Petroleum Act for the Region for consideration by
the KRG Parliament.
“The draft Petroleum Act is good for the Kurdistan
Region, and good for the rest of Iraq,” said Dr.
Ashti Hawrami, Minister for Natural Resources. “It
is based on a commitment to cooperation with Iraqi
federal institutions – cooperation on both petroleum
development and on revenue sharing.”
The Petroleum Act is designed to attract private
investors with competitive production sharing
agreements. The Act requires private contractors to
comply with the principles of good corporate
citizenship, and requires the Government of the
Kurdistan Region to comply with the highest
transparency standards.
“It is vitally important to make it clear: this
draft Act is entirely consistent with the Iraq
constitution,” said Minister Hawrami. “Furthermore,
it goes out of its way to maintain a common
nationwide approach to petroleum development, and
maintains full flexibility for cooperation between
the KRG and the federal authorities.”
The Petroleum Act applies throughout the Kurdistan
Region as defined in the Iraq Constitution, which
entered into force last year, and the interim
constitution or “Transitional Administrative Law” of
2004.
“This Act will only apply to any ‘Disputed
Territories’ where a majority of the citizens choose
to become part of the Kurdistan Region in a free and
fair referendum”, said Minister Hawrami. “Even then,
the KRG makes no exclusive claim to petroleum
revenues from any Disputed Territories, including
oil-rich Kirkuk. Those revenues will be shared by
the Kurdistan Region throughout Iraq. The
Constitution requires it, and indeed our own
Petroleum Act, soon to become law, requires it.”
Furthermore, the Petroleum Act require the sharing
of revenues from new fields that may be discovered
as a result of exploration activities licensed by
the KRG.
The Act guarantees a percentage of the Kurdistan
Region’s revenues for special purposes, including
special allocations for the social, educational and
governmental needs of the Kurdistan Region’s many
ethnic and religious minorities.
“The Kurdistan Regional Government is committed to
building an open, just, and caring society, where
all ethnicities and faiths can flourish”, said
Minister Hawrami. “Getting the petroleum revenue
distribution and management right will be crucial in
this endeavour. We hope that the rest of Iraq does
the same.”
Media enquiries:
KGR Spokesman Khaled Salih
Tel: 00964 750 423 51 21 OR 0046 70 672 22 77
Email: spokesman(at)krg.org
Krg org
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