ERBIL (Kurdistan 24) – The Kurdistan Regional Government (KRG) on Wednesday released the fourth report on the region’s Oil and Gas review conducted by Deloitte.
The report delves into data on “oil exports, consumption and revenues, covering the period from 1 April 2018 to 30 June 2018,” reviewed by the international “Big 4” audit and consulting firm, Deloitte, a statement released on the KRG website said.
The KRG “reiterates its commitment to the people of Kurdistan that the two international audit firms, Deloitte and Ernst & Young, will continue to independently review the oil and gas sector, inclusive of all the streams.”
According to the Deloitte report, out of nearly 31.4 million barrels (bbls) of exported and consumed oil, the KRG piped about 30.2 million bbls during the three months period, an average of 10.46 million barrels per month.
The remainder, about four percent, consists of “swaps of crude oil for diesel, and heavy fuel oil for use in KRG power plants” and “local sales.”
The KRG sold its exported crude oil at an average of $63.854 USD/barrel, and locally at about $56.295 USD/bbl, arriving at a gross value of over $1.8 billion USD.
The report added that the “net cash balance received by the KRG for the period sales and related activities” was over $1.3 billion USD.
The KRG in its statement noted that, as part of the arrangement, “it was agreed that both auditing firms will assist Kurdistan Regional Government in training and developing local resources.”
On Oct. 23, “the Regional Council for Oil and Gas Affairs [RCOGA], in coordination with Deloitte, arranged a 3-days Oil and Gas training workshop.”
“This was the first batch from Board of Supreme Audit receiving industry training and a plan is being prepared for more training by the Board of Supreme Audit for selected candidates, to equip them with modern auditing techniques and oil and gas industry knowledge,” the statement concluded.
In January 2018, the KRG released its first report, reviewed by Deloitte, on oil and gas production, export, and revenues for the first half of 2017 and followed up with a second report for the second half of 2017.
In mid-August, Erbil released the third report that showed the numbers for the first quarter of 2018.
In November 2016, the KRG signed an agreement with the multinational professional services firm, Ernst and Young, to audit oil and gas processes in the Kurdistan Region.
Editing by Nadia Riva