Iraq government and Kurds discuss disputed oil contracts

Brittany Sturdivant
November 25, 2008
Oil

On Monday Iraq’s oil minister met with senior Kurdish officials so that they could discuss an oil contract dispute. The dispute is supposedly had caused tensions between the Shiite-dominated central government and the Kurdish self-rule regional government in the north. The Kurds have an oil and gas law that was established in August 2007 and ever since then there has been over 20 product sharing contracts with international oil companies. Iraq’s oil ministry is claiming that the oil contacts are invalid and they are now threatening to exclude and blacklist the companies that have signed these deals with the Kurds. After the two hour meeting held on Monday the two sides agreed to operate the Khourmala oil field, south of the Kurdish city of Irbil. Iraq is doing this because they want to attract international oil companies so they can provide investments that are much needed.I think it’s ridiculous that the Iraq oil ministry is threatening to exclude and blacklist these companies. By doing this to these companies, I think it will make Iraq look very and other countries and companies may not want to do business with them anymore. I do not see why the Kurds have to contact Iraq if they decide to sign contracts with oil firms. Iraq is suffering tremendously from a drop in oil prices, so I think they need to stop worrying about these contracts and figure out what they can do to help the people in their country.

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