Kurdish MP: We hope that Baghdad is serious money to pay the oil companies

28/03/2012 19:35

Arbil, March 28 / March (Rn) - The head of the Commission on oil and energy in the Parliament of the Kurdistan region Lavigne Omar on Wednesday that the region hopes to be the Baghdad government is serious in exchange entitlements of foreign companies operating in the oil sector in Kurdistan.

The Iraqi Finance Minister Rafie al-Issawi said in a press conference on the sidelines of the Arab summit in Baghdad that the Iraqi government agreed to pay 650 billion dinars as receivables for oil companies operating in the Kurdistan region.

The decision came after he waved to the Kurdistan Regional Government Monday to halt oil exports from fields in the end of this month that Baghdad continued detention of payments due to the oil-producing companies.

Said Omar, told the Kurdish news agency (Rn) that "the Iraqi government an obligation to pay amounts due to the oil companies operating in the producing region."

She pointed out that "the only company which markets are the Iraqi oil company SOMO (state company) and the amounts shall be deposited in a box of oil revenues and then the Iraqi government to pay the share of the region, It is strange that Baghdad had not paid the amounts so far."

In its response to the decision to consent to pay dues Baghdad, Omar said "We hope that the Iraqi government is serious about the remarks and to implement those statements, and this is supposed to. Must pay the amounts."

She says that "this is not the first time that we hear these statements from Baghdad, but we hope that they pay the amounts due."

Omar pointed out that "in the case of non-payment of amounts due we have no choice but to reduce the size of production, because companies will not produce oil if you do not get their financial dues."

A spokesman for the Ministry of Natural Resources Kurdistan Regional Government said in a statement on Monday that due to production costs and investments that should be producing companies do in the region have decided to Ministry of Natural Resources to reduce exports to 50 thousand barrels per day has been stopped completely within a month if no payments.

He added that the federal government for the city of Arbil, about $ 1.5 billion. He continued that the last payment received by the Kurdistan Regional Government amounted to $ 514 million and was in early 2011.

He said Iraqi Oil Minister Abdul Karim and coffee earlier this month that the central authorities had received 65 thousand barrels of oil a day only less than half of 175 thousand barrels per day expected from the Kurdish region since the beginning of the year.

The official said that the Kurdish region could export more oil than if Baghdad committed to its obligations to pay.

And there is a dispute has existed since a long time between the federal government and the KRG oil contracts concluded on Erbil, Baghdad says it is illegal.

From: Yassin al-Rubaie. Open: Abdullah Sabri