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Iraq says RWE deal with Kurdistan Illegal
30.8.2010 |
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August
30, 2010
BAGHDAD, — Iraq on Sunday slammed as
"illegal" an agreement between its autonomous
Kurdistan region and the German energy firm RWE that
is expected to help supply the planned Nabucco gas
pipeline to Europe.
"All (sales) contracts and agreements signed outside
the legal framework, in other words with SOMO, are
illegal," Baghdad's oil ministry said in a
statement.
SOMO -- the State Oil Marketing Organisation --
deals with sales of Iraqi oil and gas products.
Talks on the allocation of Iraq's natural resources
are deadlocked, and Baghdad refuses to recognise
contracts which the Kurdistan regional government
KRG, based in Erbil, the capital city of Kurdistan,
has signed with foreign oil companies.
"No one outside the ministry has the right to sign
contracts for the exportation of oil and gas," the
oil ministry added.
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Iraqi Oil Minister Hussain al-Shahristani. Life
photo. |
RWE announced on Friday it has
signed
a cooperation deal with the Kurds "to
develop and design its domestic and export gas
transportation infrastructure -- creating a route to
market for Kurdistan's major gas reserves."
"The cooperation also foresees the negotiation of
gas supply agreements to enable gas from the region
to be transported to Turkey and Europe via the
Nabucco pipeline," the German company said.
RWE is a key shareholder in the Nabucco project,
which aims to bring up to 31 billion cubic metres
(1,100 billion cubic feet) of gas annually to Europe
through Turkey.
The European Union regards the project as vital to
its future energy security following a number of
eastern European disputes which have disrupted
supplies of Russian gas.
Kurdistan has been touted as a potential major
supplier, but experts warn that instability in Iraq
could make it difficult for supplies from the region
to reach Europe.
The regional government halted oil exports in
October last year due to a payment dispute with
Baghdad.
The oil ministry on May 6 said it had reached a deal
with Erbil whereby all revenues would be handed over
to SOMO,www.ekurd.netwith
Baghdad responsible for paying the extraction
expenses in Kurdistan. But the agreement has not
been implemented.
Copyright, respective
author or news agency, AFP
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