ERBIL, Kurdistan Region of Iraq - A recently-signed memorandum of understanding between Iraq and British Petroleum to rehabilitate Kirkuk’s oilfields must include the Kurdistan Region as well, Kurdish Prime Minister Masrour Barzani told Reuters on the sidelines of the World Economic Forum in Davos, calling the move "unconstitutional".
"The area that Baghdad is talking to BP about is a disputed territory. According to the constitution, disputed territories are not a region which can be unilaterally decided by either Erbil or Baghdad,” PM Barzani told Reuters on Thursday.
The Memorandum of Understanding (MoU) between the Iraqi government and British Petroleum (BP) to redevelop four Kirkuk oil fields was signed during a visit by Iraqi Prime Minister Mohammed Shia’ al-Sudani to London a little over a week ago.
"We are not against the development in principle but we are against the mechanism," he said
The four fields include the Baba and Avanah domes and three adjacent fields - Bai Hassan, Jambur, and Khabbaz, all operated by the Iraqi government’s North Oil Company.
The two sides are expected to sign the multi-billion-dollar deal in early February.
"Practically, I do not think that we have the leverage to stop that," Prime Minister Barzani said, but called the deal "unconstitutional”.
Kirkuk is known for its vast natural resources and oil-rich fields.
The deal consists of rehabilitating existing facilities, where required, and the construction of new facilities - including gas expansion projects - together with a drilling program at the Kirkuk fields, has the potential to stabilize production and reverse the decline, returning production from this nationally important oilfield to a growth path, according to an earlier statement from BP in December.
Kirkuk, known for its numerous oil resources, has been the central point in a long-standing dispute between Iraq and the Kurdistan region over a stretch of land, with both sides laying claim to the city for decades now.
A day before the top Iraqi delegation visited London, the KRG said in a statement that the Iraqi constitution laments the right of the Region to the newfound oil and gas fields in Kirkuk, calling for a long-due referendum in disputed territories as per article 140 of the constitution.
“According to articles 110 and 115 of the 2005 Iraqi Constitution, the KRG is given absolute and exclusive rights to manage newfound oil and gas fields” the statement read, adding that “article 112 states that the older oil and gas fields, like Kirkuk’s fields, must be jointly managed by the Iraqi and Kurdish governments. And Baghdad has been obligated to come to an agreement with the Kurdistan Region for sharing of previously found (older) fields.”
Iraq has been looking for ways to increase oil production and sales from the city, namely, the attempts at reviving the Kirkuk-Baniyas pipelines to increase the daily export of its oil.
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