Updated 3 June 2009
Erbil, Kurdistan – Iraq (KRG.org)
– Iraqi President Jalal Talabani, Kurdistan Region President Masoud
Barzani, and Kurdistan Regional Government (KRG) Prime Minister
Nechirvan Barzani joined in celebrating the start of crude oil exports
from the Kurdistan Region.
The export of crude oil from the Tawke
and Taq Taq fields represents a landmark accomplishment for the
Kurdistan Region that will bring in much needed revenues for the people
of Iraq.
President Talabani underscored the
importance of this day and the necessity of cooperation between Kurds
and Arabs. “We must stress tolerance between Arabs and Kurds – we have
had a sense of brotherhood and this will remain.†He added, “This is an
historic event, not only for the Kurdish people but for all Iraqis.â€
President Barzani said, “We have
proven in a clear, proper way that we are committed to the Constitution
of Iraq. I congratulate everyone on this achievement, which will
benefit all Iraqis.†He added, “I wish much success for all the people
of Iraq and of the Kurdistan Region; that we may live in prosperity and
peace.â€
Prime Minister Nechirvan Barzani
presented an overview of the KRG’s position on oil exports. “We are
happy to be part of a federal Iraq within a democratic constitutional
framework. When we open these valves today, the Kurdistan Region will
be earning hundreds of millions of dollars in revenue for all the
people of this country.â€
The Prime Minister added, “We are
determined to use our natural resources in a constructive manner for
the benefit of all Iraqi citizens, and to create a better future for
ourselves and our neighbours, as well as for future generations. It is
important to judge people not by what they say, but by what they do.
Five years ago we promised to share our energy resources with Iraq.
Today our actions and deeds speak for our words and promises.â€
The Speaker of the Kurdistan
Parliament Adnan Mufti emphasised the positive impact of this step, and
expressed his hope for a bright future and enhanced development
throughout Iraq. “It is in the interests of the people of the Kurdistan
Region and of Iraq that we build a reputation as the oil industry
partner of first choice with private and international oil companies.
The Oil and Gas Law passed unanimously by the Kurdistan parliament in
August 2007 provides a solid legal framework in which the oil industry
can flourish,†he said. The Speaker added, “The passage of Kurdistan’s
oil and gas law through parliament was not easy. But in some ways it
marked a coming of age for our chamber.â€
Dr Ashti Hawrami, the KRG Minister for
Natural Resources detailed the value and importance of the KRG’s
contribution to Iraq’s oil exports. More than 35 companies from 15
different countries, including Turkey, have entered into contracts. At
today’s oil price, the KRG’s efforts will generate 2 billion US dollars
in revenue within one year, 5 billion dollars within another year, and
a staggering 20 billion dollars in just four years. He added that the
contractors have strong incentives to invest quickly, leading to much
earlier revenue returns to the people of Iraq. The investors get a
gross profit share of around 10 to 12 percent.
Dr Hawrami spoke passionately about the value
of market-driven policies in the rest of the Iraq, the cost to the
Iraqi people of current and past failures to manage oil resources well,
and how decentralization and competition can increase oil revenues for
Iraq. The Constitution, he noted, requires the oil resources to be
managed in a way that maximizes revenues for all of the people of Iraq.
He warned the Parliament in Baghdad that its own independent experts
were advising that the contract models in the bid rounds may not
satisfy the Constitution’s requirements.
Minister Hawrami emphasised the need for a
modern federal oil law and the vital importance of a clear, transparent
and objective revenue sharing law to share the oil revenues. He hoped
that this day marked the beginning of a new era of cooperation within
Iraq and across borders.
Iraqi Vice President Hashemi, Vice President
Mahdi, and Deputy Prime Minister Al-Isawi sent their representatives to
attend the event, and several members of Iraqi Parliament were present,
including many sitting on the Oil and Gas Committee.
The CEOs of the three principal oil firms
involved in these fields – Addax, DNO, and Genel Energy – all expressed
their happiness regarding the commencement of crude export as well as
the development of the Kurdistan Region over the last several years.
Technicians opened the valves from the two
oil fields via live television feed, while President Talabani and
Barzani came onstage together to thunderous applause. The oil will join
the main Iraqi pipeline, which runs to Ceyhan in Turkey where it is
then exported internationally.
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