Draw Media

In light of the federal court's decision, the Iraqi oil ministry has issued a letter calling for the creation of a company to manage the Kurdistan Oil and Gas, which will belong to the central government, named KROC, and its headquarters would be in Erbil.

According to a letter sent by the Iraqi ministry of oil to the Kurdistan Regional Government on March 24, the regional government has been asked to:

🔹 Within 15 days, hand over a copy of all the contracts he has signed since 2004 with oil and gas companies in the field of oil (discovery, development, transportation, sale, export), along with record sales and exports of crude and gas oil, for:

🔸 A team of experts and advisers from the Iraqi oil ministry in the presence of the regional government's authorized representative review all the documents.

🔸 Adapting Kurdistan’s contracts and coordinating them to Iraqi law and the decision of the Supreme Federal Court of Iraq.

🔹 Submitting a request to the Council of Ministers to create an oil company, To be given the authority to manage all the oil and gas activities in those fields that have been contracted by the Kurdistan Regional Government.

🔸 All the rights and obligations of the agreements and contracts made by the regional government will be transferred to its name.

🔸 creating more investment in oil resources through: reducing investment expenditures, better management of oil and gas fields, and increasing exports.

🔹 The Iraqi ministry of oil proposes that the company that manages the region's oil and gas case be named KROC and be under the supervision of the Iraqi Financial Supervisory Board and that the company be owned by the federal government and headquartered in Erbil.

🔹 An expert employee, whose rank is no less than that of the general manager, is in coordination with the Council of Ministers, the Ministry of Finance and the Central Bank of Iraq to open an account at one of the most trusted international banks, and to put all the exports and sales of Oil and Gas in Kurdistan into this bank account. It will be paid on the basis of the region's share of Iraq's public budget, as well as in an arrangement with the Iraqi Ministry of Finance, provided that this is done within 45 days of the agreement to issue the letter (with the approval of the Council of Ministers).

🔹 All the procedures set out in this article as a new policy for the future and all relevant parties will be responsible for their adherence.