Contracts of companies granted territory 30% vs. 2% given by Baghdad

2012-08-05
Baghdad morning new

28 Iraqi oil inspectors warned of the dangers of widening differences between the Iraqi Government and the Kurdistan Regional Government unless a solution to the outstanding problems between them and expedite the required constitutional amendments.

Experts in an open letter to the Chamber of Deputies received new "," morning on the imbalance in terms of oil contracts entered into by the Kurdistan Regional Government with international companies in the field of exploration and development contracts amounting to 48 contracts, which allow companies to acquire between 28 to 30 percent of the revenues of the oil source of new fields with no more than the amount of the share of the Centre contracted by 2% only.

The letter also explained that the territory gives the same contractors for field contracts discovered and undeveloped while not exceeding their share of contracts awarded by the Ministry of oil in Baghdad for the fourth round of licensing companies 5 to 6 dollars per barrel.

The message said that the policy of "generous" by the Kurdistan Regional Government is behind the persistence of international oil companies and contractors with Arbil, in cooperation with the Kurdish administration.

The letter also stated that the Government of Iraq receives 70% of the totality of resources obtained from the Kurdistan region is obtained with 96% of Basra Kut or contracts or other governorates of Iraq.

Experts suggested that the Government of Iraq Kurdistan share amendment of public budget based on figures given the variation in yield» financial Ministry contracts and contracts for the territory, and they said that the solution lies in the financial consequences of its territory, and to amend its share of the federal budget as a contribution to the State budget.

If the Federal Government received from the territory (70%) Of the total production, and received from the provinces (96%) Of the total production, the share of the territory's annual budget for Iraq are as follows: (17%)x(70%)/(96%)=(12.4%).