2023-11-12T11:41:14+00:00
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/ The Kurdish oil expert, Govted Sherwani, confirmed on Sunday that an atmosphere of optimism and serious intentions prevails in the dialogue between Baghdad and Erbil to reach an agreement on the Kurdistan Region’s oil file and the nature of the joint mechanism for its management, which has become a necessary issue because it affects Iraq’s revenues, especially with the rise in global crude prices.
Sherwani said in an interview with Agency, “The visit of the Federal Minister of Oil and his accompanying delegation today to Erbil reflects the seriousness of the Iraqi government, especially with the presence of a delegation that includes administrative and technical leaders in the ministry. This means that the tactical, administrative and financial aspects of resuming the process of exporting the region’s oil will be talked about.” Which we hope will happen as quickly as possible.”
Regarding the dispute between the two sides, Sherwani explained that “the dispute between the two sides revolves around the vision and perspective of the oil law, as the vision in the region is based on strengthening the reality of the federal status of the Kurdistan government, the institutions present in it, and the constitutional status.”
He added, “While the vision in Baghdad is moving towards centralization, and according to Article 112 of the Constitution, it guarantees clear participation between the federal government and the oil-producing regions and governorates, this article is supposed to be taken into account clearly in distributing the tasks and responsibilities of managing the oil file, which we hope will be addressed professionally and practically.” On political and partisan influences.
Regarding the cost of oil production in the region, Sherwani said, “The estimates that were placed in the federal budget for oil production and transportation are $12 per barrel for production, and $7 for transporting one barrel, while the estimates presented by the Ministry of Natural Resources in the region amounted to $24 for production, and $8 for transportation.” For transportation, and these expenses are normal, given that the entire process of oil production and transportation is managed by foreign private companies, some of which are local, and these companies have operational and investment expenses.”
He pointed out that “these numbers are realistic and close to what is paid to similar foreign companies contracting with the Federal Ministry of Oil within the so-called licensing rounds.”