KRG Notice To All Crude Oil Buyers From SOMO

[TBomb]

KRG Notice To All Crude Oil Buyers From SOMO

 

WED, 9 JUL 2014 20:55 | KRG.org 




Erbil, Kurdistan (MNR.KRG.org) - Under Article 112 of the Iraqi Constitution, the Iraqi federal government is legally required to distribute oil and gas revenues from present fields “in a fair manner in proportion to the population distribution in all parts of the country.”

Under Article 112, the KRG is entitled to 17% of all proceeds from oil sales by the Federal Oil Ministry and the State Oil Marketing Organisation (SOMO) (or any other division of the Iraqi federal government). 

The KRG has the right, in circumstances where the Iraqi federal government is not sharing revenues in accordance with the Iraqi Constitution, to take such action as the KRG considers appropriate to obtain all entitlements the Iraqi federal government is required to pay to the KRG under the Iraqi Constitution. This right is reflected in Kurdistan law.

Since at least 2005, the Federal Oil Ministry has failed to comply with its constitutional and legal duties to the KRG, including under Article 112. The Federal Oil Ministry and SOMO continue to sell and to seek to sell oil, gas and other petroleum products to third parties, and to retain the full proceeds of such sales, all in violation of the KRG’s express constitutional and legal rights, and without the participation or approval of the KRG.

In these circumstances, and until further notice, Article 112 legally precludes the Federal Oil Ministry and SOMO (or any other division of the Iraqi federal government) from selling oil from Iraq without the approval of the Kurdistan Region, as a producing Region. Oil sales by the Federal Oil Ministry, SOMO, or any other division of the Iraqi federal government are therefore in violation of the Iraqi Constitution and international law, and may be outside the scope of their authority. 

The KRG notifies all persons that have purchased or may purchase oil or gas from any division of the Iraqi federal government, including the Federal Oil Ministry or SOMO, that the KRG will consider such buyers and those who have facilitated shipments on their behalf or on behalf of SOMO as colluding in, supporting, or facilitating violations of the KRG’s rights (including under the Iraqi Constitution and/or international law), unless such buyers pay the KRG 17% of the purchase price, reflecting the share to which the KRG is legally entitled.

Buyers who fail to make such payments to the KRG will be facilitating the Iraqi federal government’s breach of the KRG’s rights and passing to the Iraqi federal government monies that rightfully belong to the KRG. Such buyers will also run the risk of paying funds to the Iraqi federal government pursuant to arrangements that may be outside the authority of the Iraqi federal government under the Iraqi constitution. 

The KRG will take such legal action against buyers of oil from the Federal Oil Ministry and SOMO (or any other division of the Iraqi federal government) as may be necessary to protect the KRG’s constitutional and legal rights.

http://www.krg.org/a/d.aspx?s=040000&l=12&a=51847

REMINDER ARTICLE - NOTE: FAUD HUSSEIN, ONE OF THE KURDISTAN REP. SPEAKERS ON THE C-SPAN VIDEO WHICH CAME OUT LAST WEEK, STATED THAT THE BEGINNINGS OF THE PROPOSAL OF KURDISH INDEPENDENCE WAS SOLIDIFIED AS RESULT OF THE ACTIONS OF THE MALIKI GOVT, WHICH (HE STATED) TOOK PLACE ON JUNE 9 2014.

Kurdistan Region-Iraq News in brief 9.6.2014

June 9, 2014

Slêmanî (Sulaimaniyah), Erbil-Hewlêr, Duhok, Kirkuk [Kerkûk], Raniya, Halabja, Kurdistan Region 'Iraq'

Kurdish Parliament works to establish a private oil company in Kurdistan region like Iraq's Sumo

Erbil: The Committee of Energy and Natural Resources in Kurdistan Parliament announced on Sunday seeking to prepare a draft law to establish (Oil Company of the Kurdistan region) and its work is similar to the Iraqi oil marketing company SOMO, to export and sell Kurdistan oil in global markets. The site of the Kurdistan Democratic Party KDP quoted Chairman of the committee Circo Jaudat as saying that his committee met today with a representative of the President of the Kurdistan Regional Government, and it was decided during the meeting to agree on a specific mechanism for the organization of joint work between our committee and the Ministry of Natural Resources. He explained that the mechanism includes the participation of the Energy Committee in all public activities of the ministry, and the formation of a higher committee with the participation of a number of specialists, including specialists in environmental and petroleum engineering, economy and trade in oil field. 

http://www.ekurd.net/mismas/articles/misc2014/6/kurdlocal1633.htm

[dontlop]

They would be better off if they also listed in their letter

Where they get the right to do it alone

They mention article112 that says they get 17%

But they don't mention which article gives them the right to sell oil independently

Without Baghdad approval

I'm not sure anyone will buy that announcement

The oil ministry will most likely counter that announcement

I'm sure Baghdad will

Announce it if Kurdistan can bypass the federal govt and sell oil on their own

It's not Kurdistan oil

Its Iraqi oil

The rothschilds are trying to control Iraq oil

And the old CEO of Bp that blew up the oil rig in the gulf of mexico

The Rothchilds are gonna end up tossed out of iraq

[billio0]

Thanks Tbomb for the post.

 

As for your comment and question, dontlop, I believe that what is being said in the article is this:

 

Since the GOI has repeatedly violated the Constitution of Iraq by failing to pay the Kurds 17% of all oil revenues as required, they now are declaring to all who engage in oil-related commerce with Iraq that they too are parties to such violations unless they divert 17% of the proceeds of all oil commerce with the government of Iraq directly to the Kurds.

 

Likewise, while you are correct in stating there exists no provision in the Iraqi Constitution to allow for independent oil sales by Kurdistan, the other part of the post mentions efforts by the Kurds to form their own independent State, thus precluding any need for permission from Iraq to do anything they choose; in essence, a Declaration of Independence by the Kurds.

 

That is exactly what neither Turkey, Iran, or Iraq wants, and the reason that Saddam Hussein gassed the Kurds in a genocidal attempt to eliminate them altogether.

 

The Kurds are very progressive in their own right, and have their own government already, as well as their own military/army. Whether they will be successful in pulling away from Iraq, or are just using this latest announcement as an inducement to get their fair share of the funds from oil sales is yet to be seen.

 

Billio0

Edited July 9, 2014 by billio0

[TBomb]

THANKS BILLIO WHAT IS NOT MENTIONED HERE IN THIS DISCUSSION IS THAT IN THE CONSTITUTION IS THAT THE KURDS ARE NOT NOT ALLOWED TO SELL THEIR OIL. BY PROXY OF THIS, IS THEIR CONTENTION, THAT THEY HAVE A RIGHT TO DO SO.

[calkid11]

Thank you

[10 YEARS LATER]

I wonder how the Historians will untangle this Intrigue & scribe this into the books.

[waterman13]

I wonder how the Historians will untangle this Intrigue & scribe this into the books.

Twisted as the rest of the "history" we've been taught.

Wm13

[billio0]

THANKS BILLIO WHAT IS NOT MENTIONED HERE IN THIS DISCUSSION IS THAT IN THE CONSTITUTION IS THAT THE KURDS ARE NOT NOT ALLOWED TO SELL THEIR OIL. BY PROXY OF THIS, IS THEIR CONTENTION, THAT THEY HAVE A RIGHT TO DO SO.

 

Thanks again TBomb for pointing out the fact that the Kurds are as much in violation of the Iraqi Constitution by initiating separate contracts with oil companies and making sales from them, as the GOI has in not abiding by the principles that provides for them to receive their 17% share of all oil revenues.

 

Neither party is following the rule of law, and that is a fact. I believe this post and article is a further effort by the Kurds to bring attention to their position rather than an attempt to vindicate themselves entirely from fault or blame. Since they have been somewhat successful in cutting oil deals aside from the Central government of Iraq, is it a stretch to consider their continued success with those companies who are tired of waiting to get paid or begin operations with all of the equipment and personnel they have invested in Iraq?

 

I personally think it is a savvy move on the part of the Kurds to go at it this way.

 

But, make no mistake, I agree that two wrongs don't make a right, or is that a left?

 

Billio0

[dontlop]

Maybe the Kurds deserved to be cut out of the budget

Parliment obviously thought they did

Who else was cut out of the budget ?

[sandfly]

THANKS

[TBomb]

Billio0 - you're smart.  

[Moonman1963]

Amen to that. Thanks Billio0