The Iraqi Kurds brushed off Wednesday threats by the central government
in Baghdad to blacklist oil firms which sign contracts with the Kurdish
regional government ahead of a new national oil law.
The regional government charged the warning issued by Oil
Minister Hussein Shahristani last Thursday was reminiscent of the Arab
chauvinism of Saddam Hussein's regime.
"We thought that the era of threats against the Kurds in
Iraq was over," the regional government said. "It is disappointing to
see that Dr. Shahristani has chosen to side with the anti-Kurdish
elements from the Saddam era."
It said the deals it had signed with foreign oil firms were
"constitutional and legal within the framework of the Kurdistan Oil and
Gas Law, the only existing framework regulating our oil industry in the
post-Saddam era."
The regional government has signed 15 such contracts with 20
international companies since it passed its own oil law in August.
It says the contracts stipulate 85% of the returns from
these deals would be for Iraq and the rest would go to the contractor.
"We are not deterred by Dr. Shahristani's views," the
statement said. "Experience shows that most international oil companies
now ignore his unhelpful interventions.
"Once again our message to the international oil companies
and potential investors is...empty threats and talk of blackmail will
not last," the statement said. "We are sure that eventually common
sense will prevail in dealing with these matters."
Shahristani warned oil firms to stop entering into contracts
with the regional government in Arbil as the national parliament in
Baghdad has yet to approve a new oil and gas law.
"We warned the companies that there will be
consequences...that Iraq will not allow its oil to be exported,"
Shahristani told reporters on the sidelines of OPEC meetings in the
Saudi capital Riyadh. "Our position is that any company that signs a
contract without the approval of the federal authority will compromise
their chances of getting business in future in Iraq."
The oil and gas bill is stalled in parliament amid bitter differences between rival factions.
When approved, the new law will open up Iraq's long
state-dominated oil and gas sector to foreign investment. It will also
stipulate receipts be shared equally between Iraq's 18 provinces, a key
concern for the Sunni Arab minority that Washington says has fueled the
insurgency.
Iraq's oil reserves - the world's third largest - lie in the
Kurdish north and Shiite south and the Sunnis fear the two communities
could monopolize future income.