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The oil dispute puts Baghdad in front of “big” legal problems.. Billions of compensation for Erbil (details)


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Yeah Barzani, you are correct—the constitution must be followed; except you talk out both sides of your mouth…the constitution stipulates a mutual agreement between Kurdistan and Baghdad, but you asshats keep kicking the can down the road so you can line your own pockets and claim you are the victim of unilateral political decisions from Baghdad. Nobody’s buying it. MAKE THE DAMN AGREEMENT!

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I like  Fairways & Greens...no mistaking his feelings ... No filter, I like it ! 

Too bad no one will call these Bureaucrat asshats...well, asshats ( F& G landed that moniker so don't censor me ) to their face.

These people need to be publicly shamed.

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Baghdad - people  

On Thursday, the Petroleum Contracts and Licensing Department of the National Oil Company issued a clarification regarding oil contracts in the Kurdistan region.  

 

  

  

A statement issued by the department, of which “Nass” received a copy, (12 May 2022), said that “the competence of the federal government in managing the current fields does not negate its lack of competence in managing the fields that will be discovered in the future, and saying otherwise will lead to illogical results, most notably that some regions The state and other regions will participate in the fields explored before the entry into force of the constitution on the one hand, and they will be alone in managing and exploiting the new and explored fields on the other hand, in their lands, which leads to the inflation of their imports and the increase in the welfare of their residents compared to the regions and governorates that are not organized in a region in the country.  

  

He added, "The fact that any region concludes oil contracts and agreements with international companies and countries to export the extracted oil and gas violates the provisions of the above constitution, because the competence of the federal government is to formulate oil and gas development policy and manage the activity related to them and its competence in foreign trade."  

  

He continued, "The Federal Ministry of Oil would like to point out that the financial terms of service contracts prepared by the Ministry of Oil, which will be adopted for redevelopment, comprehensive development or exploration in all licensing rounds, are the best compared to the financial terms of production-sharing contracts, whether it is for the state or foreign companies (" contractor).  

  

He continued, "In production-sharing contracts for the region's fields, the contractor is given a share of the extracted oil, in addition to the freedom to dispose of his share of the produced quantities and sell them at the place and time specified by the contractor, and this violates Article 111 of the Constitution, which clarifies that oil and gas is the property of the Iraqi people."  

  

And he added, "In spite of this, the region authorized foreign companies to have full control over the petroleum operations through the terms of the production-sharing contracts for the region, as one of those clauses included "that the government and each contracting entity have the right and obligation to sell or dispose of their oil shares in kind," meaning that The regional government has granted the contractors the right to sell their share of the oil produced and pay the government’s share, as the opposite is supposed to be true, and this means that the principle of production control lies in the hands of foreign companies, and this is in contrast to the service contracts for licensing rounds of the Federal Ministry of Oil, all The oil produced through licensing round contracts is sold by the Oil Marketing Company (SOMO) at competitive prices that generate the highest revenues for the Iraqi people.  

  

He stated, "The Federal Ministry of Oil would also like to show that the financial terms of production-sharing contracts for the Kurdistan region - Iraq compared to the financial terms of service contracts have achieved very high benefits and profits for foreign companies at the expense of the government due to the absence of the principle of transparent competition and the resort to a direct bilateral agreement with companies when referring Those contracts, contrary to what was approved by the Federal Ministry of Oil in the oil licensing rounds, which caused the loss of the opportunity to obtain the best commercial terms to maximize financial revenues from selling oil produced from the region’s fields, where the financial returns to the regional government constitute no more than 80% on average. After deducting production costs (the cost of producing a barrel of oil), while the financial returns for the first and second licensing rounds amounted to more than 94.5% to 96.5%, and as shown in the attached commercial plans, and production costs are equivalent to (4) times the production costs in the licensing rounds of the Ministry of Oil Federal.  

  

On the other hand, the regional government signed on itself, through production-sharing contracts, a contractual commitment to exempt contractors from taxes and allowed them to inflate their profits without imposing any kind of taxes or sharing those inflated profits, especially when oil prices rose globally, and this violates the law The tax for the year 1982 (the amended) and its instructions.  

  

He pointed out that "the Ministry of Oil would also like to clarify that the region did not adhere to the quotas allocated to Iraq under the OPEC agreements, which negatively affected the quantities of oil allocated to Iraq from the fields of the center and south, and thus negatively affected the financial returns of the federal government, despite bearing its burdens by securing the salaries of its people in the region." ".

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The Iraqi National Oil issues a statement on the contracts and agreements signed in the Kurdistan region

The Iraqi National Oil issues a statement on the contracts and agreements signed in the Kurdistan region
Iraqi Ministry of Oil
 

Mubasher: The Iraqi National Oil Company, represented by the Department of Petroleum Contracts and Licensing, issued today, Thursday, a statement on the contracts and agreements signed in the Kurdistan region.

The National Oil Company said, in a statement, that the federal government's competence in managing the current fields does not negate its lack of competence in managing the fields that will be discovered in the future.

And the company added: “Saying otherwise will lead to illogical results, most notably that some regions will participate with the state and other regions in the explored fields before the entry into force of the constitution on the one hand, and will be unique in managing and exploiting the new and explored fields on the other hand in their lands, which leads to the inflation of their imports and an increase in the welfare of the people. Its population compared to the regions and governorates that are not organized into a region in the country.

The National Oil Company explained that the fact that any region concludes oil contracts and agreements with international companies and countries to export the extracted oil and gas violates the provisions of the constitution. Because the competence of the federal government is to draw up a policy for the development of oil and gas and manage the activity related to them, and its competence is in foreign trade.

The National Oil Company pointed out that the Federal Oil Ministry would like to point out that the financial terms of service contracts prepared by the Ministry of Oil, which will be approved for redevelopment, comprehensive development or exploration in all licensing rounds, are the best compared to the financial terms of production-sharing contracts, whether It is for the state or foreign companies (the contractor).

And she continued: "In production-sharing contracts for the region's fields, the contractor is given a share of the extracted oil, in addition to the freedom to dispose of his share of the produced quantities and sell them at the place and time specified by the contractor, and this violates Article 111 of the Constitution, which clarifies that oil and gas are the property of the Iraqi people."

The company noted that, despite this, the region has authorized foreign companies to fully control the petroleum operations, through the terms of the production-sharing contracts for the region. That is, the regional government has granted the contractors the right to sell their share of the oil produced and pay the government’s share, while the opposite is supposed to be true, and this means that the principle of production control lies with foreign companies, and this is in contrast to the service contracts for licensing rounds of the Ministry of Oil Federal, all oil produced through licensing round contracts is sold by the Oil Marketing Company (SOMO) at competitive prices that generate the highest revenues for the Iraqi people.

And she indicated that the ministry would also like to show that the financial terms of production-sharing contracts for the Kurdistan region - Iraq compared to the financial terms of service contracts have achieved very high benefits and profits for foreign companies at the expense of the government; Due to the absence of the principle of transparent competition and the resort to a direct bilateral agreement with companies when referring those contracts, and this is in contrast to what was approved by the Federal Ministry of Oil in the oil licensing rounds, which caused the loss of the opportunity to obtain the best commercial terms to maximize financial revenues from selling oil produced from fields Territory.

The National Oil Company indicated that the financial returns to the regional government constitute no more than 80% as an average after deducting production costs (the cost of producing a barrel of oil), while the financial returns for the first and second licensing rounds amount to more than 94.5% to 96.5%, and as shown in The attached commercial plans, and that the production costs are equivalent to (4) times the production costs in the licensing rounds of the Federal Ministry of Oil.

On the other hand, the regional government signed on itself, through production-sharing contracts, a contractual obligation to exempt contractors from taxes, and allowed them to inflate their profits without imposing any kind of taxes or sharing those inflated profits, especially when oil prices rose globally, and this violates the tax law for the year 1982 (revised) and its instructions.

The National Oil Company ended its statements, indicating that the Ministry of Oil would like to clarify that the region did not adhere to the quotas allocated to Iraq under the OPEC agreements, which negatively affected the quantities of oil allocated to Iraq from the central and southern fields, and thus negatively affected the financial returns of the federal government, despite bearing its burdens by securing salaries. its people in the region.

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1 hour ago, southbeach said:

Pretty obvious now that they can’t revalue until HCL is in place.  I didn’t realize HCL was not a federal law yet.  How did Baghdad think this could happen without a federal law in place?

 

Unfortunately, thinking is not their strong suit. On & on & on we go.

They probably would get smoked on  " are U smarter than a 5th grader ".

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It seems to me that Kurdistan region stands to loose its contracts with oil companies they are selling to unless the region goes with the Federal ruling. It seems to me that the whole region could go out of business if they don't. But I'm no expert on the matter. I wonder how long it will be before the first oil company, with a Kurdistan region contract, will be served with a law suit by the Federal Iraq government. :lmao::lmao::lmao::bravo::pirateship:

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5 hours ago, Goggles said:

It seems to me that Kurdistan region stands to loose its contracts with oil companies they are selling to unless the region goes with the Federal ruling. It seems to me that the whole region could go out of business if they don't. But I'm no expert on the matter. I wonder how long it will be before the first oil company, with a Kurdistan region contract, will be served with a law suit by the Federal Iraq government. :lmao::lmao::lmao::bravo::pirateship:

Makes sense and good question 

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 Sulaymaniyah: Peace be upon you  
 
With the relationship between the federal government and the regional government regarding the extraction and export of oil and gas entering a sharp turn during the last period after the issuance of the recent decisions of the Federal Court, informed sources revealed to "Al-Sabah", that Erbil is pressing to invest in Sulaymaniyah gas in preparation for its export, as it is working in the oil file, But the leaders of Sulaymaniyah reject this and favor its investment by the federal government, specifically because it respects the decisions of the Federal Court and so as not to bear the consequences of its illegal export.
A well-informed Kurdish source in Sulaymaniyah told "Al-Sabah": "Iraq's independence with regard to the gas file disturbs a neighboring country (he did not name it)," explaining that "there is a project to transport gas through Jordan or Turkey," noting that Turkey's relationship is volatile with America and Europe, But Iran and Russia will not be silent about the region’s exported gas being a substitute for Russian gas,” he stressed, stressing that “the issue goes beyond the region to regional countries to Europe, and the biggest player is Britain to defy the Russians,” as he put it.
The well-informed source pointed out that "the pressure series between the two major powers in the region (the National Union and the Democratic Party) does not amount to a complete rupture, and a subsequent agreement can be reached in light of mediations taking place between the two parties to formulate a balanced relationship that avoids them clashing." Europe requires finding an alternative to Russian gas, so do you expect Baghdad to have a strong position?” Expressing his conviction that “Britain strongly welcomes the export of the region’s gas in the sense of the welcome enjoyed by the Prime Minister of the regional government during his recent visit to London and his meeting with its prime minister and energy experts to persuade officials to find an alternative to Russian gas. The strong cover for exporting gas to Europe, which is an end in Britain to isolate the Russians in the war raging in Ukraine.
In his turn, the representative of the Kurdistan Justice Group, Soran Omar, said in his interview with "Al-Sabah", that "the issue of handing over oil imports and border crossings in Sulaymaniyah Governorate to the federal government is not a solution to the crisis between the center and the region, and it is almost impossible."
He added, "The gas issue at the present time is a pressure card that the region uses against the federal government, and on this basis all oil imports must be returned to the federal government so that a comprehensive solution can be reached to end the staff salaries crisis by Baghdad." 
Yesterday, Wednesday, the Federal Supreme Court decided to postpone the date of deciding the issue of sending sums of money to the Kurdistan Regional Government to finance the salaries of employees and workers in the public sector until the 12th of next June.
For his part, the Director of the International Center for Development Studies in the United Kingdom, Dr. Sadiq Al-Rikabi, said in an interview with Al-Sabah: "The lack of local agreement on the adoption of (the oil and gas law), partisan conflicts and narrow interests have weakened both the center and the region alike."
Al-Rikabi added that "the situation (the incompatibility) between Baghdad and Erbil and the lack of trust between the two parties, was exploited by some neighboring countries that found an outlet in the case of Iraqi weakness in order to impose their conditions or obtain the greatest benefit, and transform the energy file from an Iraqi economic file to an open file. on regional states and become vulnerable to foreign interference.
The Prime Minister of the Kurdistan Regional Government, Masrour Barzani, denied in a press conference in Erbil yesterday, Wednesday, the sale of oil at less than international market prices, accusing the Federal Oil Ministry and the national "SOMO" company of threatening companies and pressuring them to buy the region's crude at a low price.
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This is such a **** show….they have been trying to pass the HCL for over 15 years now!  I met with Ali Agha from Dinar trade back in 2010 (when he still owned the company) and he said two things have to happen before an RV took place….. Chapter VII passing and the HCL passing…………here’s to hoping the HCL passes soon and after that happens we will have no more excuses for the RV not happening.  Fingers crossed!!!!

Edited by Early Retirement
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54 minutes ago, Early Retirement said:

This is such a **** show….they have been trying to pass the HCL for over 15 years now!  I met with Ali Agha from Dinar trade back in 2010 (when he still owned the company) and he said two things have to happen before an RV took place….. Chapter VII passing and the HCL passing…………here’s to hoping the HCL passes soon and after that happens we will have no more excuses for the RV not happening.  Fingers crossed!!!!

They make passing a kidney stone seem like a day at Disney World.

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"The Kurdistan Regional Government denies all allegations that the KRG, with the support of the armed forces, has taken over Bay Hassan and Dawd Gurg oil fields in Kirkuk, which are operated by the North Oil Company (NOC)," KRG Spokesperson Jotiar Adil said in a statement.

Adil further added that it is clearly stipulated in the Iraqi Constitution that natural resources are the property of "all Iraqis and not of a single company."

"The North Oil Company has, for years, without the presence of an oil and gas law, working in opposition to the Constitution. If they are willing to work towards a resolution to outstanding issues, let the oil and gas law be implemented as per the Iraqi Constitution."

He also stressed that this campaign against the Kurdistan Region is "purely political and without legal basis," pointing out that such allegations against the region are "completely untrue and are aimed at sowing discord and agitating against the rights of the Kurdistan Region’s oil."

 

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Erbil, Kurdistan Region, Iraq (GOV.KRD) - The Kurdistan Regional Government denies all allegations that the KRG, with the support of the armed forces, has taken over Bay Hassan and Dawd Gurg oil fields in Kirkuk, which are operated by the North Oil Company (NOC).

It is clearly stipulated in the Iraqi Constitution that natural resources are the property of all Iraqis and not of a single company.

The North Oil Company has, for years, without the presence of an oil and gas law, working in opposition to the Constitution. If they are willing to work towards a resolution to outstanding issues, let the oil and gas law be implemented as per the Iraqi Constitution.

This campaign against the Kurdistan Region is purely political and without legal basis. Such allegations against the Kurdistan Region are completely untrue and are aimed at sowing discord and agitating against the rights of the Kurdistan Region’s oil.

14 May 2022
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4 hours ago, 6ly410 said:

"The North Oil Company has, for years, without the presence of an oil and gas law, working in opposition to the Constitution. If they are willing to work towards a resolution to outstanding issues, let the oil and gas law be implemented as per the Iraqi Constitution."

 

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What this means: Now that the loser Kurds, lost in court, they have no where to go, are coming around, getting used to reality: they are going to lose. They can lose easy. They can lose hard. Their choice. I remember what Saddam did to them. No one wants that. Awful👎

 

Now they are at the part where they talk themselves into the narrative that they are the victims of Fake News, Iraq style. It's all about coming to term with the new reality: the last American has left, they have lost in court, they are badly out-numbered, they are a land locked small ethnic group that can't export it's oil, if the government decides to stop them. They have no cards to play.

 

While the long war was on, they could stall, come up with a thousand excuses, act like complete jerks, so they did. They thought they could be an independent country, even held a referendum, most Kurds said we we want to leave, they thought could just leave, with all that wealth. Think again. No one gets to walk out the door with hundreds of billions of dollars. Fat chance, Bucko. The Kurds could hope the Americans would stick around, back them up somehow. That didn't happen. Uncle Sam isn't going to fight, their fight anymore. The bullshit will end. :bs:

 

The Arabs are about to turn on the Kurds, now that they are done beating the crap out of each other. Just a matter of time. All that energy has to go somewhere. :butt-kicking:

 

The Kurds are sad, the country is getting it's act together. Kurdish stupidity depends on Arabs fighting each other. That's ending. We are going to win. Big. 🎰 Hang on.

 

The Kurds are singing the Blues Brothers.....So now, as the old saying goes, they are "Up shits creek in a canoe, without a paddle" Now comes the part in the movie, where the Nun beats the crap out of them...and we all laugh :P :cheesehead:

 

 

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