Iraq says Kurdistan oil contracts illegal

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The Iraqi Oil Ministry has reacted to recent reports that the Kurdistan Region has signed a contract with a Norwegian company to exports its oil by announcing that it considers the contracts illegal.

News agency Reuters reported that despite the Kurdistan Regional Government (KRG) announcing that it has received two letters from Baghdad allowing Norwegian firm DNO International to begin exports, the central government in Iraq still opposes the move.

"The Oil Ministry's position has not changed regarding the contracts signed by the Kurdish regional government with the foreign oil companies. Approving the Kurds to export does not mean approving the contracts they have signed," ministry spokesman Asim Jihad is reported by Reuters as saying.

The Iraq Oil Minister Hussain al-Shahristani also waded into the argument by stating that KRG didn’t have the authority to sanction such a move.

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"All we are saying is that these contracts are illegal and illegitimate. The (Kurdistan) region does not have the right, nor does any province or anyone else, to sign contracts on behalf of Iraq without authorisation," Shahristani is reported to have told state television.

Baghdad’s stance contradicts that of the KRG’s in regards to the Tawke and Taq-Taq oil fields in Kurdistan. Dr Ashti Hawrami, Minister for Natural Resources from KRG gave a statement yesterday that suggested Baghdad had given the Kurdistan Region the green light to negotiate its own oil contracts.

“I m pleased to confirm that from today, May 10 2009, I have received two letters from the Ministry of Oil in Baghdad, stating that exports of oil from the Tawke and Taq-Taq oil fields in Kurdistan should be expedited,” Hawrami said.

Exports had been due to commence on June 1, 2009.