KRG Ministry of Natural Resources

Kurdistan Regional Government
Office of the KRG Minister for Natural Resources

22 October 2006 

Today the Ministry for Natural Resources of the Kurdistan Region of Iraq published a final draft of a Petroleum Act for the Region for consideration by the Kurdistan National Assembly, the Region's parliament. 

“The draft Petroleum Act is good for the Kurdistan Region, and good for the rest of Iraq,” said Dr. Ashti Hawrami, Minister for Natural Resources. “It is based on a commitment to cooperation with Iraqi federal institutions – cooperation on both petroleum development and on revenue sharing.” 

The Petroleum Act is designed to attract private investors with competitive production sharing agreements. The Act requires private contractors to comply with the principles of good corporate citizenship, and requires the Government of the Kurdistan Region to comply with the highest transparency standards. 

“It is vitally important to make it clear: this draft Act is entirely consistent with the Iraq constitution,” said Minister Hawrami. “Furthermore, it goes out of its way to maintain a common nationwide approach to petroleum development, and maintains full flexibility for cooperation between the KRG and the federal authorities.” 

The Petroleum Act applies throughout the Kurdistan Region as defined in the Iraq Constitution, which entered into force last year, and the interim constitution or “Transitional Administrative Law” of 2004. 

“This Act will only apply to any ‘Disputed Territories’ where a majority of the citizens choose to become part of the Kurdistan Region in a free and fair referendum”, said Minister Hawrami. “Even then, the KRG makes no exclusive claim to petroleum revenues from any Disputed Territories, including oil-rich Kirkuk. Those revenues will be shared by the Kurdistan Region throughout Iraq. The Constitution requires it, and indeed our own Petroleum Act, soon to become law, requires it.” Furthermore, the Petroleum Act requires the sharing of revenues from new fields that may be discovered as a result of exploration activities licensed by the KRG. 

The Act guarantees a percentage of the Kurdistan Region’s revenues for special purposes, including special allocations for the social, educational and governmental needs of the Kurdistan Region’s many ethnic and religious minorities. 

“The Kurdistan Regional Government is committed to building an open, just, and caring society, where all ethnicities and faiths can flourish”, said Minister Hawrami. “Getting the petroleum revenue distribution and management right will be crucial in this endeavour. We hope that the rest of Iraq does the same.” 

The full text of the draft Kurdistan Region Petroleum Act, and explanatory memorandum, can be viewed in English and Arabic at: 

• Draft Kurdistan Region Petroleum Act 

• Explanatory Memorandum