BAGHDAD -

Disagreements and tensions between the Iraqi government and the Kurdistan Regional Government over the mechanism of exporting crude oil from fields in the region have again exacerbated tension between the two sides, and threatened to weaken the desire of foreign investors to go to Iraq.

These disputes began when the Federal Court in Baghdad issued a decision in mid-February, stating that the oil and gas law in the region was unconstitutional, and prevented him from exporting oil in his favour. Rather, the export must be through Baghdad based on a lawsuit filed by the Iraqi Oil Ministry.

Among the decisions of the Federal Court to deduct oil export amounts from the region's percentage in the budget in the event that Kurdistan is not committed to implementing the decision.

In light of this, the American "Schlumberger", the largest global company in the field of oil field services, and "Halliburton Energy Services", and "Baker Hughes Company", the largest oil field services companies, decided In the world, withdrawing from work in the Kurdistan region in compliance with the decision of the Federal Court in Baghdad.

Al-Marsoumi confirmed that the foreign oil companies withdrawing from the Kurdistan region are working under new names (Al-Jazeera)

Baghdad position

And the Iraqi Oil Ministry issued a clarification in this regard, which was reviewed by Al Jazeera Net, saying that "the three companies are among the sober international companies in the field of oil services, and according to their official addresses to the ministry, they confirmed not to submit to new projects in the region in compliance with the decision of the Federal Court and the directives of the committee formed in the ministry."

According to the clarification, "these companies are in the process of liquidating and closing existing tenders and contracts," confirming that they do not own a commercial entity or other companies operating in the region, whether with their trademark or for others or on their behalf, and in a manner that does not violate the decision of the Federal Court or intersect with the Ministry's directives.

The economic academic Dr. Nabil Al-Marsoumi revealed the fact that foreign oil companies have effectively withdrawn from the region, and he told Al-Jazeera Net that according to reliable information from a private source closely related to the work of oil service companies, all oil service companies are still operating in the region, but with new names.

Al-Marsoumi revealed that "the companies have changed their names, for example, Schlumberger is currently working in Kurdistan under the name "LOT" (IOt), which is one of its divisions, while Halliburton operates under the name "boots and coots", which is also one of its divisions. .

Al-Marsoumi added, quoting the source, that Schlumberger's last letter to the Oil Ministry is to cover up its work in the region under another name to avoid the sanctions that the ministry intends to impose on oil companies operating in Kurdistan.

The Caliph considered that the decision of the Federal Court is important, similar to the decision to nationalize Iraqi oil in the seventies of the last century (Al-Jazeera)

The importance of the decision

The academic in oil and energy affairs, Dr. Bilal Al-Khalifa, stresses the importance of the Federal Court's decision, which is no less important than the nationalization of oil at the beginning of the seventies of the last century.

In his interview with Al-Jazeera Net, Al-Khalifa said that the decisions of the Federal Court have become binding according to Article 94 of the Iraqi Constitution, and it is not possible to delay, not apply or reject it, otherwise those who rejected the decision will be arrested according to Article 329 of Penal Code No. 111 of 1969 in force.

The academic points out that "there are international companies other than the ones that announced the withdrawal have remained silent, including the Russian Rosneft, and the Emirati Dana Gas," noting that in the event that they do not withdraw, Baghdad will implement the decision of the Federal Court in dealing with them.

The Caliph expects that “these companies will deal with Baghdad to amend the contracts previously concluded to ensure that they remain in the central and southern regions of Iraq because they accepted the decision of the Federal Court, and they may remain to work in the region, but with the approval and condition of dealing with Baghdad and not with Erbil.”

Taha believes that the Federal Court's decision is contrary to the Iraqi constitution (Al-Jazeera)

Erbil stand

In turn, the economic advisor to the presidency of the Kurdistan Regional Parliament, Dr. Arshad Taha, believes that Baghdad should have legislated the 2007 oil and gas law that is on the shelves of the Iraqi parliament to draw up the common oil policy, instead of issuing the last decision, which was considered to be in violation of the Iraqi constitution.

Speaking to Al Jazeera Net, Taha attributed the reasons for Erbil's export of oil without referring to Baghdad to the Iraqi government's abstention from sending the region's share of the federal budget since 2014, indicating that "the export of oil was to cover the salaries of Kurdish employees and retirees and public services."

On the Kurdish position and the new steps of the Federal Court's decision, Taha revealed that "the regional government is waiting for the formation of the new Iraqi government in order to negotiate with it, which must put in its priorities the legislation of the oil and gas law of 2007 to resolve the differences between the two sides."

Zainab Al-Moussawi: Baghdad will be able to provide the region's share of the federal budget through its control over its oil production (Al-Jazeera)

new port

Zainab Juma'a al-Moussawi, representative of the coordination framework that includes prominent Shiite forces with the exception of the Sadrist movement, stresses the importance of the federal government's control over the region's oil export, "which she considered a new outlet that would supplement and maximize Iraq's revenues instead of going to the benefit of the Erbil government, which is unable to secure salaries for the region's employees.

Zainab al-Moussawi added in her interview with Al-Jazeera Net that "Baghdad will be able to provide the region's share of the federal financial budget, including the salaries of its employees, by controlling Kurdish oil production."