Existing KRG oil contracts must be respected: US
“We support reforms that improve efficiency and sustainability in the electricity sector,” the consulate wrote.
ERBIL (Kurdistan 24) – The existing oil contracts that the Kurdistan Region has signed with international oil companies must be respected, the United States Consulate General in Erbil said in a Facebook post on Wednesday.
The remarks came during a meeting between the newly inaugurated US Consul General in Kurdistan Region Irvin Hicks Jr. with the acting Minister of Natural Resources Kamal Mohammad Salih in Erbil, where they discussed reducing greenhouse gas emissions in the oil and gas sector.
“We...agree existing oil contracts must be respected,” the US Consulate General wrote in the post, adding the country supports the Kurdish government’s dialogue with its Iraqi counterpart on oil and gas issues.
Having been initially the Minister of Electricity, the Kurdish minister discussed the reforms in the electricity sector as well with the US diplomat.
“We support reforms that improve efficiency and sustainability in the electricity sector,” the consulate wrote.
The consulate described the minister as "a man with a big job" for managing the affairs of both public offices.
A number of US Congress members have recently written letters to Secretary of State Antony Blinken regarding the existing oil and gas issues between Erbil and Baghdad, urging the top diplomat to encourage dialogue between the governments.
Iraq’s Federal Supreme Court February ruled against the Region’s oil and gas law, describing it as “unconstitutional”. Erbil has strongly rejected the verdict, saying it has been “politically motivated”.
The Congress members warned that the legal decision has been “selectively” applied against US energy companies working in Kurdistan Region.
Responding to a letter issued by the Iraqi oil marketing company, SOMO, the KRG strongly objected to Baghdad’s attempts to create market uncertainty with regard to Kurdistan Region.
“Oil produced in the Kurdistan Region continues to be produced, to be shipped, to be sold, to be refined, and to be consumed,” the statement read.
In addition to calling for dialogue with the federal government on the outstanding issues, Prime Minister Masrour Barzani has reiterated that the Region would honor its commitments to the international oil companies.
The Kurdish leader has insisted that a shared administration of the hydrocarbon dossier is a constitutional right of Kurdistan according to the country’s 2005 Constitution.