Kurdistan Autonomous Region and Rosneft agree to extend natural gas pipeline to Turkey


nsnbc : Russian State energy giant Rosneft and the government of Iraq’s Kurdistan Autonomous Region (KAR) have  reportedly agreed to extend a pipeline to export natural gas from the region to Turkey.

Iraq_KAR_Energy workers in the Kurdistan Autonomous Region of Iraq_(archives)Neither the Ministry of Natural Resources nor Rosneft have, as far as nsnbc international is informed, released official statements about the deal yet. However, Monday morning a local source in Erbil told nsnbc that it is likely that the + $1 billion deal has been wrapped up earlier this year already.

The pipeline is expected to be capable of carrying 30 billion cubic-meters (bcm) of gas from the Kurdistan Autonomous Region (KAR) of Iraq to Turkey. The export of Kurdistan natural gas from the pipeline will reportedly start in 2020 with construction commencing in 2019.

Ashti Hawrami, Minister of Natural Resources for the Kurdistan Regional Government (KRG) and Rosneft CEO Igor Sechin signed an enery agreement in June 2017. KRG Prime Minister Nechirvan Barzani and deputy PM Qubad Talabani were also present in in Saint Petersburg, Russia, for the agreement. The pipeline is reportedly part of or an extension of this agreement.

At the time, in June, four factions represented in the – not normally functioning – parliament of the Kurdistan Autonomous Region noted that the deal was tied to the future of the Kurdistan Region and disagreed with it being signed without the parliament’s observation, interpretation and approval.

Massoud Barzani (L), whose term as President of Iraq’s Kurdistan Region ended on August 20, 2015, but refused to step down and remains unofficially in office, talk with his nephew Kurdistan PM Nechirvan Barzani. (archives)

Massoud Barzani (L), whose term as President of Iraq’s Kurdistan Region ended on August 20, 2015, but refused to step down and remains unofficially in office, talk with his nephew Kurdistan PM Nechirvan Barzani. (archives)

However, Prime Minister Nechirvan Barzani , representing the Kurdistan Democratic Party and the KRG, followed up with a press conference, explaining the deal was just an initial agreement.

“It was signed as a Memorandum of Understanding, but this is an understanding that possibly is more than 200-pages long and needs very careful [study] and it may take three to four months before we can say that it will come into effect, because it takes time,” Barzani said.

Barzani said at the time that the deals do not need the approval of the Kurdish parliament since the Oil and Gas Council has been given authority under law to sign such agreements with energy companies.  The details of the negotiations and meetings also must be examined and approved by the Oil and Gas Council, Barzani explained.

The Council, which includes the KAR Prime Ministry, the Ministry of the Economy, and the Ministry of Natural Resources, was established by a law passed by the Kurdish parliament.

The deals are a continuation and strengthening of one signed between the MNR and Rosneft in February, a contract on purchase and sale of crude for 2017-2019.

One of the four parties represented in the KAR parliament stressing that the deal should be approved by parliament was the Patriotic Union of Kurdistan (PUK). Considering the deal, the future of the region and the upcoming independence referendum, the PUK repeatedly called for the normalization of parliament before a referendum.

KAR parliament in first session after 2013 elections. Parliament has since been suspended.(archives)

KAR parliament in first session after 2013 elections. Parliament has since been suspended.(archives)

The parliament of the Kurdistan Autonomous Region of Iraq has not convened since October 2015. Following a PUK politburo meeting supervised by Kosrat Rasul Ali in June 2017, it was emphasized that the PUK recognizes the suitable political preparations for the referendum in September, but stressed that the KAR parliament must be normalized before August 10. Parliament has not been normalized. The referendum is scheduled for September 25.

The parties, including the PUK, Gorran (Change Movement), and the Kurdistan Democratic Party (KDP) agree that a yes for independence in the referendum would not automatically lead to the establishment of an independent state, but that a yes would give the region a mandate to negotiate with the federal government in Baghdad about an “exit” of the KAR from Iraq that is consistent with the Iraqi and KAR Constitutions.

The PUK has not yet appointed a delegate for the referendum committee to oversee the referendum process and to visit political representatives and governments abroad, because it insists on normalizing the legislative branch of government. The Change Movement (Gorran) and Kurdistan Islamic Group (Komal) have also not sent delegates either, citing a lack of parliamentary mandate to the historic process.

CH/L – nsnbc 18.09.2017



Source Article from https://nsnbc.me/2017/09/18/kurdistan-autonomous-region-and-rosneft-agree-to-extend-natural-gas-pipeline-to-turkey/

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