Exacerbated after the crisis between the center and the region: Oil experts in an open letter to the House of Representatives

WOW... This s a must read!!!!!

On: Sun 05/08/2012 15:24





BAGHDAD - The Citizen


Given "the importance of oil and out" of Article 111 of the Constitution, which says that oil and gas are the property of all Iraqi people and the fact that the House of Representatives is the Federal, which represents all the Iraqi people in accordance with Article 49 of the Constitution and given the "Saddam is high between the Union Government and the KRG over oil 'We oil experts, the undersigned offer to Hzratkm some technical notes and perhaps benefit the public in shaping opinion on the subject.

First "- General observations

1 - Articles (111) and (112 Second ") of the Constitution does not Tzmhan exclusivity on matters of oil and that the side agreement between the political blocs in contrast" to that is a violation of the constitution should be legally prosecuted. "

2 - that the responsibility for the enactment of the non-oil and Gazembny Aldstormat all paragraphs of the relationship, so far, do not fall on one entity, but rather lies on everyone. If we want to blame someone more than others, we have to blame the House of Representatives for not being able to Tjaozaalh compatibility (Vito blocks) and thus failing to settle the matter in favor of the country since 2007.

3 - The policy of imposing the status quo may be profitable for the foreseeable future, but devastating in the long run because it lays the foundations for healthy relationships in the country.

Second "- oil contracts

1 - It is important to recall that the Kurdistan Regional Government signed (48) a contract for exploration and development. All type of contracts involved in the production, which won a stake of Contractors (18-20)% of the production. If the price of oil (100) dollars per barrel, the share of the contractor be (18-20) dollars per barrel, compared with (2) Dolarellbermal one in decades and the Ministry of Oil of green fields, the discovered fields is developed. Note "that the share of entrepreneurs in the region are getting more with the increasing price of oil in the global market, while remaining constant in the case of contracts for the ministry. This may be the main factor for the persistence of Exxon Mobil their contracts in the region.

2 - Compared with the contracts and the Ministry of Oil Exploration and Development (the fourth round of licenses) similar contracts for the region, the cost of decades of Kurdistan (18-20) USD / barrel, compared to (5-6) dollars / barrel, the ministry for decades.

3 - This shows that the contracts of the Kurdistan region was very generous "with the contractors, as compared with the decades of the ministry. Was able negotiator Kurdistan to get better terms if he wanted to. We believe that the main goal is to buy political support, the price always smiling at the expense of all the Iraqi people.

4 - includes contracts for the region rent "for his government of (10%) of the output. And if the deduction of the rent in addition to the share of contractors amounting to approximately (20%) of production, the rest will be up to (70%) of the total production of the province. And assuming that all remaining production handed over to the federal government, the contribution of the region in the EU budget be increased by (70%) of its production. On the other hand, the contribution producing provinces such as Basra, Kirkuk, Missan, up to (96%) of its production total after deducting the share of contractors the (2 %) and the share of local government (petro dollars), the (2%) Also, if the price of oil up to (100) dollars / barrel.

5 - Given "of this variation in the financial benefits between contracts of the Ministry and the contracts for the region, we see that the solution lies in bear territory consequences of its contracts of Finance, and adjust its share of the federal budget in proportion to its contribution to the state budget. If it is received by the federal government of the province of ( 70%) of its production total, and what you receive from the provinces (96%) of the output of the total, the region's share of the annual budget for Iraq to be as follows: (17%) x (70%) / (96%) = (12.4%) .

6 - and promises "to contracts of Exxon Mobil say that the company is still maneuvering gain" of time and waiting "for the enactment of the oil, perhaps you can maintain all of its contracts in Iraq. And that the message of President Obama's recent visit to Mr. al-Maliki does not change the situation, nothing. We note that the letter praised the policy of Iraq's oil. in the sense that the U.S. administration is aware of the importance of raising the production capacity of Iraq to more than (10) million barrels per day, for the global economy in general and the U.S. economy in particular. However, ignoring the crisis, Exxon Mobil, which may adversely affect "to achieve production targets. It is difficult to understand what this position were not self-interest to the general interests of a tyrant.


Third "- oil derivatives

1. Oil Ministry says it distributed petroleum products in a fair to everyone, while the province says that he does not receive a full share. The ministry has accused the provincial government smuggled oil and petroleum products to neighboring countries, and the region denies this. It is clear that these reasons do not seem sufficient to justify the escalating confrontation between the two sides. If there good will and the necessary transparency to remove uncertainties, by allowing for the presence of the central government in places of conflict such as borders and oil fields, as the crisis worsened to such a degree.

2. It is useful to Nzkran the region's share of the budget and oil derivatives and other quota amount (17%), which is hypothetical, estimated at up to (12-13)% according to official records of the Ministry of Planning. Kurdish officials say that the difference is subject to recovery if it is proved counted. In the sense that they borrow for free "(without interest) of those who most need them for the money. And the federal government to pay attention to it, fair to others.

3. According to our information, the crude oil, which was equipped for the refineries of Iraq in 2011 had a rate of (565) thousand barrels a day. "And on the assumption that the rate of processing for this year will be up to (580-600) thousand barrels per day, the region's share of crude oil to be about ( 100) thousand barrels per day. and a solution "to the problem of oil products we see that the region given the choice between continuing in the current version or receive a share in the form of crude oil gives the region for which the central share of oil derivatives. He also has to combine both proposals.

4. That the province has three refineries with a simple unit to improve gasoline, Faculty of card (65) thousand barrels per day, do not know where to go production. They build new refineries to increase the capacity of the filter in the region to more than weak now. Accordingly, we do not see technically compelling reason to direct the region to build a pipeline to Turkey under the pretext of his need for petroleum products.

IV "- the production and export

1 - a production capacity of the fields in the region (300) thousand barrels per day, while the stick to hand over the province (175) thousand barrels per day to the Union Government. The lack of transparency and the inability of the center of the control and monitoring what is going on in the region, it becomes the question about the fate of teams Allanth, of (125) thousand barrels per day, projects. Can not dispel the doubts did not allow the provincial government on the actual audit what is happening in the ground.

2 - When the central government has accused the provincial government smuggled oil and its derivatives Alyat neighboring province quickly denied this and issued a counter-accusations. And it was possible to avoid this situation for the federal government hands. If present in the border crossings, pursuant to Article (110 first and third) of the Constitution relating to the policy of foreign trade and customs.

3 - escalation has reached new levels when the province announced its agreement with Turkey on a pipeline for oil and another for the gas through its territory. This line may represent a stage before the final completion of the project which is the start of Kurdistan since 2003. The final phase begins when the announcement of another agreement to set up a port for export.

4 - Here we have to alert the Ministry of Oil and the need to move quickly to provide new outlets for export. Because "the situation current Syrian and poor relationship with Turkey, Saudi Arabia, should go to districts transportation projects and download through Jordan and Kuwait. And because the relationship with Turkey may not improve in the foreseeable future because of the water and Kurdistan, it is necessary to prepare from now for a possible stop pumping oil Abralaradi Turkish.

Therefore, and due to the differences increased because of the Constitution wrote in haste and should be amended soon, "then the undersigned go to all of Representatives among them the Vice-Kurdistan, so that the discourses of oil discussions objective is consistent with the spirit of the Constitution and its articles. And be their own legislation reflect the understanding of a sincere and keen clear what the will of the Constitution in to keep Iraq united under the tent federal government a democracy that respects the legitimate rights of the components of the people, and ensure the unity and sovereignty. fear undersigned, who are among the Aladery facts Geological which do not observe lines, phantom of the limits of the provincial administrative, including the provinces of the region, the dispute between the province and the center may overflow to include all provinces without exception, that does not solve the constitutional quickly.

Finally, the undersigned calling their colleagues in the region because the petroleum go out of their isolation and take a full role in the analysis and discuss the issues of oil, the service of the professional and national interest, just like their colleagues and others. It is reconciled to God.
A copy thereof to the
Presidency
Presidency of the Council of Ministers
Newspapers and websites


Signatories
D. Thamer Ugaili, d. Talal Canaan, Abdul-Jabbar Olokua, Fouad al-Kazimi, Almhedy Hussein, Alaa al-Khatib, d. Ghassan Almorani Sebti, Jeweler Hamza, Abdul Zahra Kadhim, Qahtan Anbuge, Ghassan Rasim, Samir Kubba, Ghazi Al-Mufti, Nouri al-Ani, forbid Fayad, Abdul-Khaliq Al-Hamad, Jaafar al-Rubaie, Shamkhi Faraj, Qais al-Jubouri, Samir Saeed Al DAMA K, Abdul Osamaro, Munaf Yasiri, Chalabi, Ahmed Moussa, horses, Prince Fouad, Karim Chandler, full Almhedy, d. Walid Khadduri.
Total = 28 signature


http://translate.google.com/translate?hl=en&sl=ar&u=http://www.almowatennews.com/&ei=uCAcT57JEeP0sQLv16DHCw&sa=X&oi=translate&ct=result&resnum=1&ved=0CCYQ7gEwAA&prev=/search%3Fq%3Dalmowaten%2Bnews%26hl%3Den%26fhp%3D1%26rlz%3D1C1CHFX_enUS394US399%26biw%3D1024%26bih%3D653%26site%3Dwebhp%26prmd%3Dimvns