KRG Welcomes Positive Statements by Iraq’s Federal Oil Minister al-Luaibi

[The Englishman]

http://mnr.krg.org/index.php/en/press-releases/587-krg-welcomes-positive-statements-by-iraq’s-federal-oil-minister-al-luaibi.

 

KRG Welcomes Positive Statements by Iraq’s Federal Oil Minister al-Luaibi

 

Erbil, Kurdistan – Iraq (mnr.krg.org) - The Kurdistan Regional Government (KRG) welcomes the recent positive statements by the federal Minister of Oil Jabbar Ali al-Luaibi about improved relations between the KRG and Baghdad, and looks forward to hosting the minister soon for constructive discussions on resolving outstanding issues on oil and gas.

The KRG further welcomes the recent constructive discussions with the federal Minister of Electricity, Qassim Mohammed Al-Fahadawi, regarding cooperation in the electricity sector and the need to provide fuel for power and refined products to help reconstruct Mosul and other liberated areas following the defeat of IS.

The KRG notes and appreciates the support of Prime Minister Abadi for this confidence-building approach. The KRG affirms its commitment to constructive dialogue with its partners in the federal government and enters discussions over energy cooperation in good faith.

However, it is also noted that a few officials and political figures in Baghdad oppose this new atmosphere of pragmatism between the federal government and the KRG. Therefore, it is important for both sides to remain vigilant to ensure these opposing voices do not undermine the chances of progress.

For example, in a recent interview with Iraq Oil Report, Dr Falah Alamri, the Director General of the State Oil Marketing Organization (SOMO), made several contentious and misleading comments regarding the KRG’s oil export and sales process. Despite insisting he wanted to avoid interference in politics, his comments were clearly at odds with the new atmosphere of cooperation. 

The SOMO director made misleading statements about the selling price of Kurdistan Oil on the international oil market. In fact, the KRG oil sells at a similar price to the SOMO Official Selling Price (OSP). There are the usual discounts for quality from the crude blend benchmark, as used by SOMO. The only extra reduction offered by the KRG is for the cost of the money for prepayment purchases for its crude. Amid the crash in the oil price, compounded by the illegal budget cuts of 2014 imposed on the KRG by the Maliki Government, and the influx of over one million refugees and internally displaced persons, the KRG was forced to sell oil on a prepayment basis in order to pay salaries and fund its security forces. As with any loan-type arrangement, there is a cost to the money.

Any other deductions from the KRG oil export revenues are due to increases in shipping and insurance costs caused by SOMO’s aggressive and counterproductive campaign of harassment against the legal buyers and shippers of KRG oil. Such actions also increase the costs for SOMO’s own oil.

Since the KRG crude export started in May 2014, the KRG blend has successfully established itself on the international market, and now, through contracts with the world’s leading buyers and refiners, it is in demand, reaching a wide range of refineries and locations.

At a time of economic crisis, the revenue from those sales has paid salaries in the KRG and surrounding areas, provided humanitarian support to the victims of war in Iraq and Syria, and sustained the Kurdish security forces who are fighting bravely against terrorism.

The KRG’s energy policies and its positive approach to on-the-ground cooperation with the federal oil authorities in Kirkuk and the federal electricity minister in Baghdad have not only enabled it to provide power to Kirkuk, but also to come up with planned win-win arrangements whereby power and refined products can help to rebuild the liberated areas that border the Kurdistan Region.

The KRG is confident that both sides will approach the coming talks with a positive, can-do attitude, and will not let politics stand in the way of progress. 

[alreis]

Can we all, finally, get along with each other and work out the differences..

[The Englishman]

" , and looks forward to hosting the minister soon for constructive discussions on resolving outstanding issues on oil and gas."

 

O&G law included, just when i thought this was all hot air again, well a sharp u-turn from my perspective and belief that this is well and truly back on the agenda.  

[Jaygo]

Just now, alreis said:

Can we all, finally, get along with each other and work out the differences..

Ummmm.. it's 🇮🇶. You can never count on anything. 

[gregp]

52 minutes ago, alreis said:

Can we all, finally, get along with each other and work out the differences..

 

I disagree. 😜

[WheresmyRV?]

Please guys put your greed and your thievery aside and do something good for your country for once!

[jeepguy]

with this post , and one  other about the h-c-l   into the government forums in the next session of parliament ,  this could actually be done and into law  after  Ramadan or --- before the end of the year !   

[10 YEARS LATER]

Marvelous if they can get it done THIS time - can't get jazzed up over yet another rehashed article over an issue that should have bee resolved LAST YEAR !  . . . like Yogi Berra said -" Deja Vu All Over Again "

 

Let the Shoe Throwing Contest Commence - they won't resolve this issue until they're backed into a corner with a gun at their heads ! Even then, I suspect they'll put up an arguement ! 

[Calijim]

1 hour ago, 10 YEARS LATER said:

Marvelous if they can get it done THIS time - can't get jazzed up over yet another rehashed article over an issue that should have bee resolved LAST YEAR !  . . . like Yogi Berra said -" Deja Vu All Over Again "

 

Let the Shoe Throwing Contest Commence - they won't resolve this issue until they're backed into a corner with a gun at their heads ! Even then, I suspect they'll put up an arguement ! 

Well said 

They just can't bring themselves to share any of the oil revenues with "Joe Camel driver"  When the Iraqi citizens finally  realize how much money and prosperity they are being denied there could be a revolution that makes ISIS look like a bunch of bad Boy Scouts.

[fnbplanet]

This IS a positive step, but isn't the KRG only half of the Kurdish government?  Interesting that it's written in very solid English, and not a translation.

[The Englishman]

It has been ( in my opinion ) Baghdad who have tried to reign in the KRG and get a deal done albeit in Baghdad interests, but this unexpected KRG news release seems like the Kurds are the ones pushing for a deal.

This report is a government release, unlike many other individual politicians who get quoted in many news articles.

Looking forward to the outcome of this get together.  

[jg1]

I watched the interview with Barzani of kurdistan some time ago. He explained the problem. Maliki was not paying them salaries so they started to sell the oil themselves. Of course Iraq gov. did not like this and thus no HCL.

[jeepguy]

1 hour ago, jg1 said:

I watched the interview with Barzani of kurdistan some time ago. He explained the problem. Maliki was not paying them salaries so they started to sell the oil themselves. Of course Iraq gov. did not like this and thus no HCL.

that I remember too  j g 1   this also brought about the distrust in the book keeping and what money had been deposited  in turkey from oil sales ,  wasn`t much after that part , the deal for them too push oil out of a different oil line  so bagdad  could keep an eye on them ....   what a soap opera