Iraqi Official: Export of Kurdistan Oil is Unconstitutional

A senior official in Iraq has accused the autonomous Kurdistan government of exporting oil from Erbil and Kirkuk oil fields without any coordination with the Baghdad authorities.

Those types of exports, insisted a federal adviser on energy and oil to the Iraqi Parliament Speaker are unconstitutional. Ali Fayad then added that the move by the Kurdish runs counter to the budget law that was voted for by parliament.

He told a local news agency that the parliament in Iraq had voted on the country’s budget for 2015, which included a clause on sharing revenues of oil and how oil was to be exported.

He has suggested that the government should re-examine its oil agreement with the region of Kurdistan.

The natural resources ministry for the Kurds announced Saturday it had sold over 12 million barrels of crude during June and handed over 4 million barrels to the Iraqi federal government.

It stressed the government of Kurdistan had been forced to sell oil independently in order to pay debts to oil companies that were operating in extraction and exploration of the resources in the region.

Differences amongst the Iraqi federal authorities and the government of Kurdistan increased this past year after Nouri Al-Maliki the Prime Minister blocked the share of the state budget for the Kurds, due to the Kurds plans to export their oil to markets around the world directly.

However, efforts internationally led by the United Nations have worked to contain those differences since last August when Haider Al-Abadi took the Prime Minister’s office.

The agreement made between Erbil and Baghdad, which gained approval by the cabinet in Iraq last December, provides for the region of Kurdistan to hand over a minimum of 250,000 barrels of crude per day, to the Iraqi federal government to be exported. In addition, the export of more than 300,000 barrels daily through the Iraqi federal government for oil produced in Kirkuk.

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