Author: alan131210 » Tue Apr 17, 2012 5:45 pm
17/04/2012 16:57
DUHOK, April 17 (AKnews) - The Oil and Gas Law will determine the places to explore and extract oil across the country, not Shahristani, said today a member of the federal Oil and Energy Committee.
Hussein ShahristaniThe committee member also called for the continuation of production and export from Iraq and Kurdistan despite the political differences.
MP from Kurdish Blocs Coalition (KBC) Farhad al-Atroushi said that no one has the right to identify these areas before approving the Oil and Gas Law.
Hussein al-Shahristani, the Deputy Prime Minister for Energy Affairs told Bloomberg that the Exxon Mobil's contracts and other contracts carried out by the Kurdistan Regional Government (KRG) may be recognized by the Iraqi government if the authorities in Baghdad were allowed to review and modify them with the consent of the Council of Ministers.
However, he said what was non-negotiable is the exploration in three of the sites in disputed areas that are outside the region and perhaps three sites that belong to the Region. He added that the exploration of these areas will be contested by Baghdad.
Tensions between the governments of Baghdad and Erbil after Kurdistan Region rejected the Oil and Gas draft law, because they believed the powers it granted the federal government to manage the oil wealth would be at the expense of the region.
Tens of small and medium enterprises including Norwegian DNO and the Austrian company OMV have signed contracts to explore sites with the Kurdistan region.
The executive director of Exxon Mobil, the first major oil company to show real interest in the region, said last month:
"The company is committed to all its contracts with the federal government and Kurdistan Region and the company did not immediately respond to the request to suspend its contracts with the region.
"We noticed some flexibility in the new position of Shahristani in his last statement about Erbil contracts.
"But I, as a Kurdish MP, think that Shahristani doesn't believe in giving the region any validity related to the conclusion of oil contracts and managing the oil sector in any way."
Iraq is seeking to increase its production capacity in the coming years to reach 12 million barrels of oil per day.
By Khudr Khallat
RN/SS/AKnews
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