28.06.2013 Views

Bulletin de liaison et d'information - Institut kurde de Paris

Bulletin de liaison et d'information - Institut kurde de Paris

Bulletin de liaison et d'information - Institut kurde de Paris

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

26<br />

Revue <strong>de</strong> Presse-Press Review-Berhevoka Çapê-Rivista Stampa-Dentro <strong>de</strong> la Prensa-Basin Öz<strong>et</strong>i<br />

Maliki Puts Kurds<br />

on Spot Over<br />

Oil Payments<br />

www.al-monitor.com<br />

By: Ab<strong>de</strong>l Hamid Zebari for Al-Monitor<br />

T<br />

March 11, 2013<br />

hrough the ratification of the Iraqi Public Budg<strong>et</strong> Law for the year<br />

2013 in parliament based on the principle of "majority" rather than<br />

"consensus" — amid a Kurdish boycott of the parliamentary session<br />

— it seems that Prime Minister Nouri al-Maliki has put difficult<br />

choices before the Iraqi Kurds, which may manifest in the coming days.<br />

The Iraqi parliament approved on Thursday [March 7] the country’s<br />

general budg<strong>et</strong> of $119 billion. The session was boycotted by Kurdish<br />

<strong>de</strong>puties, and had been <strong>de</strong>layed for weeks due to several disagreements,<br />

most notably over the payments of foreign oil companies operating<br />

in the Kurdistan region.<br />

The Kurdistan Regional Government (KRG) has asked the Iraqi government<br />

to pay the remaining dues of foreign companies, estimated at<br />

about $4.5 billion, while the fe<strong>de</strong>ral government has only agreed to pay<br />

$750 million.<br />

The dispute erupted in September 2012, after the Iraqi government paid<br />

around 650 billion Iraqi dinars [$558 million] out of 1 trillion [$858 million]<br />

owed, on condition that the Kurdistan region would produce<br />

250,000 barrels of oil daily. Payment of the remaining dues was<br />

<strong>de</strong>layed, with the Iraqi government providing various excuses, prompting<br />

the Kurdistan region to stop the export of oil from the region’s wells<br />

through the Turkish Ceyhan line.<br />

As soon as the fe<strong>de</strong>ral budg<strong>et</strong> law for this year was approved, the KRG<br />

announced its rejection of many sections of the law. It noted that the<br />

political parties that approved the law based on the principle of majority<br />

have overlooked the proposals and observations ma<strong>de</strong> by the Kurdistan<br />

region on the budg<strong>et</strong> law, violated the rights of the people of Kurdistan<br />

and aborted the principle of national consensus and genuine partnership<br />

in power.<br />

The KRG pledged to take all possible legal and constitutional action<br />

against this attempt, which aims to harm the interests and lives of the<br />

citizens of Iraqi Kurdistan.<br />

The presi<strong>de</strong>ncy of the Kurdistan region <strong>de</strong>scribed the manner with<br />

which the budg<strong>et</strong> law was passed as marginalization of a key component,<br />

a supposed founding partner of the political process and rebuilding<br />

the state, and a major <strong>et</strong>hnic group in <strong>de</strong>termining the future of the<br />

country.<br />

The position of the presi<strong>de</strong>ncy of Kurdistan came after Presi<strong>de</strong>nt of the<br />

Kurdistan Region Massoud Barzani called for an urgent me<strong>et</strong>ing of all<br />

members of the Kurdish bloc in the government and parliament in Erbil<br />

to discuss the issue.<br />

A presi<strong>de</strong>ntial statement <strong>de</strong>clared that "in a remarkable step that reinforces<br />

division in the Iraqi national ranks and monopoly of political<br />

power and the country's lea<strong>de</strong>rship, the fe<strong>de</strong>ral budg<strong>et</strong> was passed by<br />

the State of Law coalition led by Maliki without taking into consi<strong>de</strong>ration<br />

a major nationalist point of view.”<br />

The Kurdistan presi<strong>de</strong>ntial statement adds: “As we are forced to take<br />

this position, which is open to all options, we hold the State of Law coalition,<br />

Maliki, and their collaborators responsible for what might ensue,<br />

and possible positions and <strong>de</strong>velopments.”<br />

Maliki has put the Kurds in a difficult position in the face of foreign companies<br />

operating in the Kurdistan region, which are <strong>de</strong>manding their<br />

dues after having waited for a long time, especially since they had been<br />

promised by the KG that it would resolve its legal differences with<br />

Baghdad.<br />

Iraqi Prime Minister Nuri al-Maliki (L) speaks next to Iraq's<br />

Deputy Prime Minister for Energy Hussain al-Shahristani during a<br />

me<strong>et</strong>ing of the Council of Ministers in Kirkuk, May 8, 2012.<br />

The KRG has so far signed 50 contracts with foreign companies, which<br />

have invested $15 billion to $20 billion in oil exploration and production<br />

in the region. However, these companies cannot export oil without the<br />

consent of Baghdad or use it in any way because the company in<br />

charge of oil export is the Iraqi Oil Mark<strong>et</strong>ing Organization(SOMO), and<br />

r<strong>et</strong>urns go to the Iraqi fund.<br />

The proportion of the general budg<strong>et</strong> allocated to the Kurdistan region<br />

is over 15 trillion Iraqi dinars [$12.9 billion] for 2013, according to the<br />

17% quota s<strong>et</strong> for it within the Iraqi public budg<strong>et</strong>. Should the KRG pay<br />

the due payments to foreign companies, it would lose half the budg<strong>et</strong>.<br />

This would also put the Kurdistan region in an unnecessary financial<br />

quandary as it seeks more <strong>de</strong>velopment and reconstruction.<br />

Oil analyst and expert Wajid Shaker says that the fe<strong>de</strong>ral government’s<br />

procrastination in paying the dues of foreign companies will force the<br />

Kurdistan region to pay the amount from the r<strong>et</strong>urns of oil being produced<br />

in oil wells in Kurdistan.<br />

He told Al-Monitor: “I suppose that the Kurdistan region will take a position.<br />

The way to <strong>de</strong>al with the situation will be based on the KRG’s <strong>de</strong>cision.<br />

However, I believe that [the KRG] is able to export oil and pay the<br />

dues of foreign companies.”<br />

Last year, the KRG exported cru<strong>de</strong> oil from wells in Kurdistan via<br />

Turkey, but in small amounts and without the consent of Baghdad,<br />

saying it adopted this plan to fill the shortage in oil <strong>de</strong>rivatives after the<br />

Iraqi government stopped providing it with them, especially since the<br />

existing refineries in Kurdistan are unable to process the quantities nee<strong>de</strong>d<br />

by the local mark<strong>et</strong>.<br />

Sources indicate that the Iraqi government’s insistence on not paying<br />

the dues of foreign companies operating in the Kurdistan region is a<br />

step it took to force these companies to stop signing contracts with the<br />

Kurds, <strong>de</strong>spite the government’s constant warnings directed at these<br />

companies.<br />

Shaker said that this would not prevent companies from coming to the<br />

Kurdistan region because they are carefully examining the issue: “Big<br />

companies like ExxonMobil and Chevron have legal and technical<br />

<strong>de</strong>partments that correspond to the governmental technical <strong>de</strong>partments<br />

in Iraq. They also have fields worldwi<strong>de</strong> and enjoy a prominent<br />

status in the world of oil. They have studied the issue, know their interests<br />

and can obtain their rights.”<br />

Shaker ad<strong>de</strong>d, “It seems that the Kurdish position so far is limited to<br />

threatening to withdraw from the government hea<strong>de</strong>d by Maliki, then<br />

withdrawing from the political process in the country. In the final stage,<br />

[the Kurds] might adopt a tougher stance, the <strong>de</strong>tails of which the<br />

Kurdish lea<strong>de</strong>rs are withholding, since it is early to do that."While<br />

Kurdish political analyst Abdul-Ghani Ali Yahya said in an interview with<br />

Al-Monitor that “the ratification of the Iraqi budg<strong>et</strong> for 2013 by the Iraqi<br />

parliament, <strong>de</strong>spite a boycott by the Kurdish bloc, contradicts the principle<br />

of consensus that has dominated political life in Iraq, albeit on a<br />

small scale, and will inevitably lead to the majority government advocated<br />

by the State of Law coalition, which is opposed by the Kurds and<br />

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!