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Iraqi President: Kurdistan Regional
Government can sign oil deals, Baghdad must OK
27.9.2006 |
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WASHINGTON,
September 27,-- Iraqi President Jalal Talabani said
Tuesday that regional authorities such as the
Kurdistan Regional Government, or KRG, can negotiate
oil and gas exploration and development contracts,
but the central government must ratify them.
The KRG has begun to sign exploration and
development contracts with companies such as
Norway's Det Norsje Oljeselskap ASA (DNO.OS) and
Canada's Western Oil Sands (WTO.T), but the Iraqi
oil ministry has questioned the validity of the
contracts.
"The regional government has the authority to reach
contracts and agreements, but the final adoption
must be decided by Baghdad," Talabani said.
Oil is part of the national sovereignty and so
belongs to Iraq, he added.
Earlier this year, Iraqi Oil Minister Hussein al-Shahristani
said all exploration and production contracts should
be handled by the ministry rather than by the
provinces. |
Iraqi President : Jalal Talabani |
The situation presages a head-on conflict between
the central government and the Kurds over the
awarding of oil contracts at some point, which could
affect deals like that signed by Western Oil Sands,
industry experts say.
Some investors and analysts fear the legal
opaqueness of the deals could give rise to the
contracts being nullified at a later date.
Furthermore, given the ongoing sectarian violence
that political analysts fear may spill over into
civil war, ownership and wealth distribution of
Iraq's massive petroleum resources is one of the
issues that could further disrupt national unity.
Talabani said Iraq's new constitution clearly states
the country's oil and gas are national resources,
"and the value of the oil must be in the hands of
the central government."
As president, Talabani, an Iraqi Kurd who has
historically championed Kurdish rights, is
representative of a coalition government analysts
say is vital for the country's stability.
Speaking at conference at the Woodrow Wilson
International Center for Scholars, a U.S.-funded
think tank, the Iraqi president said oil profits
must be distributed to the regions, "and the needy
areas must be paid more."
DowJones com
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