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Blog posts of '2012' 'October'

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Oil and Gas draft law back on tables- Tuesday, October 30, 2012

The Kurdish Globe

Both ministers agreed the meeting had been positive

Last week, the hall of the Iraqi Council of Representatives once again hosted the gathering of the high ranking energy officials from Kurdistan Region and Baghdad for choosing a draft oil and gas law to be approved.

Kurdistan Regional Government's Natural Resources Minister, Iraqi Oil Minister, representatives of the Iraqi political groups and a representative of the Kurdistan Parliament met to share ideas about the issue.

Although the decision of choosing the draft should be the authority and responsibility of the parliament's oil and gas committee, due to the sensitivity and political disagreement about it, the committee cannot make such a decision without a political agreement and a green light from the political groups.

Qassim Mohammed, decision-maker at the Iraqi parliament's oil and gas committee, says "we don't see this as interference in the parliament's work and we thank them for assisting us in resolving this issue."

Both ministers agreed the meeting had been positive and were hopeful that they would have positive results.

Ashti Hawrami, KRG Minister of Natural Resources announced in a press conference that Baghdad would transfer the funds to KRG related to the payment of the oil companies producing oil in the region.

Baghdad had accumulated debts of IQD 1.5 trillion (approximately US$1.25 billion) for the region's oil producers. However, this crisis was relived on September 13th after Erbil and Baghdad signed a 9-article agreement for ending the problems.

According to the agreement Baghdad would release the payment to the KRG and the latter would resume its exports and increase the amounts as well.

Following this agreement Baghdad release part of the payments and KRG increased the exports from 140,000 barrels per day to 200,000 bpd.

Fazil Nabi, Iraqi deputy oil minister says that Kurdistan Region's oil companies payments for next year has been fitted into the country's 2013 budget draft, the amount of which is US$644 million.

Kurdistan Region has passed its regional oil and gas law in 2007 and since then it has signed some 50 production sharing contract with international oil and gas companies. This comes at a time when the Iraqi parliament could not pass the draft oil and gas law drafted the same year, and has since then been put on hold due to political disagreement between various political groups in Iraq and especially between Erbil and Baghdad.

Baghdad authorities have been claiming that natural resources have to be managed centrally and have labeled KRG oil deals illegal. KRG officials however, argue that according to the constitution Iraq is a federal country and federal regions have the right to manage their natural resources in the benefit of all the Iraqis.

Now the Iraqi parliament has three different drafts for oil and gas laws, one of which should be chosen and approved by the parliament.

Iraqi and Kurdish oil ministers have agreed to continue meetings till they make a decision in this regards.

Akre Trategic Water Project Started- Tuesday, October 30, 2012

Akre trategic Water Project started - Kurdish Globe

The project is expected to supply water for 25 years and put an end to consumption of underground water

The KRG Ministry of Municipality and Tourism signed a contract with three Iranian companies to start Akre Strategic Water Project which is planned to solve the water problem in the area for25 years.

The projectis to be completed in 2 years, and will provide Akre and some villages around with water from Upper Zap River.

Dlishad Shahab the Minister of Municipality and Tourism, along with the Republic of Iran consul in Irbil and other KRG officials, stated that at the former Iraqi regime era, people of the Kurdistan Region were only consuming groundwater;which decreasedthe levels of ground water.

Depending on river sources instead of ground water sources is now the strategy of the KRG. "Ground water should be saved for our coming generations." Shahab said in a press conference held in Irbil on October 1st, adding that in the first stage, the government will provide such water projects for the cities then districts and sub districts.

The KRG has allocated about IQD 90 billion to the project which will bring water from Upper Zap River to Akre and isexpected to solve water problems in the area for the coming 25 years. The projectis due to supply water to 120 -- 140 thousand people in the first stage. After the completion of the project, all the water wells, which are about 80 in Akre district, will be closed.

HuseinUzaimy, The Islamic Republic of Iran consul in Irbil stated that the company is one of the most famous companies in Iran and has constructed a large number of such projects in Tahran city. In response to one of the journalists, question regarding having left a project by an Iranian company half finished in Akre, the consul said that he hasn't been informed, and stated that if they've been informed they will investigate such problems.

The project and is due to be finished in 630 daysby three Iranian companies of Omrab, Evyol and Hardam. After the completion of the project, it will supply 3000 cubic meters of water to Akre city and 17 villages around from the Upper Zap River. The project will be able to supplythe area with water until 2035.

In his visit to Bardarash District, The KRG Prime Minister Nechirvan Barzani decided that no ground water should be used any more and instead, the KRG will provide other sources of water, as indication of bringing water from Upper Zap River through a strategic project expected to be announced soon in the district, putting an end to the consumption of ground water in the area.