Saturday, April 28, 2007

Kurds want their oil fields, Sunnis want oil unity

"Politicians from the . . . Kurdish region say measures in the law that would take undeveloped oil fields away from regional governments and have a new national oil company oversee them are unconstitutional.
'Iraq, frankly, does not have the money to invest in oil fields,' said Ashti Hawrami, the Kurdish region's minister of natural resources. He added that the Kurds are disputing four annexes to the draft law that would dilute their ability to exploit oil in their territory. If the draft isn't 'watered down,' Kurdish regional authorities will not support it, he said.
The Kurds also don't trust the central government to distribute oil revenue, saying it has been behind in payments in other instances. Some have suggested that a fund be set up outside Iraq to dole out that money. 'We are asking for our fair share and guarantees that we will receive it,' Hawrami said.
Sunni Arabs and some secular Shiite politicians, however, stand firm that the central government must control oil production and revenue distribution. 'If we want to keep the unity of Iraq, the best way is to keep the oil under the authority of the central government,' said Adnan Pachachi, a secular Sunni with the Iraqi National List party of former prime minister Ayad Allawi. *
While some Kurds favor allowing agreements that would share production with foreign oil companies, many Sunnis and Shiites are against them on nationalistic grounds. They prefer service contracts."

source
Raghavan, Sudarsan. (The Washington Post). Baghdad's Fissures and Mistrust Keep Political Goals Out of Reach. April 26, 2007.

footnote
* The main reason for some sort of centralized distribution of oil revenue, whether from the Iraqi national government or somewhere else, should be the fair distribution of these revenues. It should not be used to keep regions or provinces from achieving a more autonomous status, if that's what they want.

posted: saturday, april 28, 2007, 6:07 PM ET
update: sunday, april 29, 2007, 4:42 AM ET


related posting
Should Iraq's oil fields be nationalized? April 11, 2007.

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