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KRG questions reliability of oil revenue, salary data from Iraqi PM Abadi

By Rudaw 4/1/2018
An oilfield in the Kurdistan Region. Photo: Rudaw
An oilfield in the Kurdistan Region. Photo: Rudaw

ERBIL, Kurdistan Region — The spokesperson of the KRG dismissed claims by Iraqi Prime Minister Haider al-Abadi who had alleged that the Kurdish government exported 2 trillion Iraqi dinars (about $1.6 billion) of oil over the last three months of 2017, questioning the quality of the source of Abadi's information and his continued rhetoric at press conferences to try to resolve issues.

"The average of oil exports since after October 16 in the Kurdistan Region was 265,970 barrels of oil which was not sold in Brent price and its revenue did not reach two trillion as Abadi claims otherwise," announced Safeen Dizayee, the KRG spokesperson.

Abadi said on Tuesday that the KRG exported 2 trillion Iraqi dinars of oil over the last three months of 2017. He claimed that production expenses amounted to about 313 billion dinars, leaving Erbil with monthly revenues of 544 billion dinars.

"Abadi says that the Kurdistan Region exported 450,000 barrels per day on a daily basis in October. It is clear to all sides that after the October 16 events, the Havana and Bai Hassan oilfields, which had a produce of 250,000 bpd daily, fell to the Iraqi government and North Oil Company, hence halting exports since," Dizayee explained, reiterating that has since halved the KRG revenues.

The KRG spokesman rejected that Erbil's monthly income was 544 billion dinars, saying neither Iraq nor the KRG oil sold at full Brent Crude prices.

"We do not know the source of this incorrect information with Abadi and how could he confirm them," Dizayee pondered.

Erbil has maintained that their revenues have been slashed nearly in half since the loss of Kirkuk oil fields to the Iraqi government in mid-October, leaving the government with a net of $337.4 million (about 400 billion dinars) for salaries after deducting essential expenses and payments to international energy companies.

The salaries of KRG employees and civil servants reach 850 billion dinars every month. The economic crisis forced the KRG reduce it to 600 billion with the saving system. 

Yet, Abadi claims that the salaries are 300 billion dinars, the KRG spokesperson wondered, slamming the allocation of 334 billion dinars to the Region's government employees for a month in the Iraqi 2018 budget draft, down from 497 billion dinars in the 2017 budget law.

Dizayee described Abadi's press conference on Tuesday as not serving the current atmosphere of closeness between Erbil and Baghdad.

"While there is a lot of internal and international effort for the start of dialogue and the resolution of  the Kurdistan Region and Iraqi federal government and while we saw positive signs from Baghdad and felt there was now a convenient atmosphere for the beginning of dialogue and an Iraqi government delegation visited the Kurdistan Region, once again, the Prime Minister, in his press conference spoke in a language which does not serve the current atmosphere and direction by giving some incorrect information concerning relevant questions with respect to the Kurdistan Region."

Dizayee expressed that serious talks are the right path to resolving the issues — not remarks or press conferences — which has been the case for the past three months wielding no result.

In his explanation, Dizayee added the KRG oil ministry released its monthly production, sale and oil revenues reports from 2014 until the end of 2016. Renowned Deloitte audited the KRG for the first six months of 2017 and will soon release the overall process in a report.

He described figures released by Iraqi Oil Ministry referenced by Abadi as "not audited and ambiguous" since Iraq's membership in the global, good-governance Extractive Industries Transparency Initiative has been suspended.

Iraq's membership in EITI has been suspended since 2016 due to a lack of transparency.


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Muraz Adzhoev | 4/1/2018
It is absolutely obvious that corrupt, criminal, militarized, unconstitutional, fascist and chauvinistic (Arab Shiite) government located in Baghdad “Green Zone” is not interested in peaceful dialogue and bilateral negotiations with Erbil within the framework of the Constitution of deadly failed Iraqi federation. Baghdad has been trying to use its military, police and illegitimate pro-Iranian regime shiite militia forces, illegal administrative, economic and financial sanctions, punitive measures against the self-determined People, ethnic and religious communities of Southern Kurdistan in order to create new bloody dictatorship. Erbil should officially appeal to all the permanent member-states of the UN SC and the UN HRC with the requirement to urgently hold special meetings to recognize Iraqi Federation as the disintegrated and failed state and the legality of the outcome of the Referendum on the territorial reintegration and sovereign independence of Southern Kurdistan.
| 4/1/2018
I doubt rudaw would allow truths to be posted, I dare the KRG provide Full unredacted and none edited Disclosure and transparent accounting of All oil production, sales and receivables including and not limited to any and all bank accounts held and or controlled by the KRG directly and or indirectly not limited to "local oil sales" to "local companies" and or "refineries" and offshore companies receiving payments "on behalf of the KRG" to prove how much was sold and how much was received. be it Nokan, zozek, kar, zagros and or any other offspring Since 2003 to present day. I do not know why the Corrupt kurdish leadership continues to think they are intelligent in carrying out their deception scam of both the Kurdish people of Iraq and the Federal Government?
FAUthman | 4/1/2018
KRG numbers are correct but we are going back and forth with numbers while nothing is getting resolved with the Kurds, and Abadi wants now to cut Kurds budget arbitrarily with no new census information made available. He may make a few salary handouts here and there to the Kurds, but that would be it. Soon everybody will be fed up (parliament and Dawa included, US Iran and Turkey plus the international community for the flight bans and Abadi's lack of flexibility and the stagnant KRG economy). So the federal court gets involved and they too cannot deal with the math either and the dilemma continues. Bottom line then: nothing gets resolved with the Kurds, and a federal budget law keeps getting delayed affecting the rest of the country, the refugee dilemma continues. Abadi is finally tossed out of office in May or elections are postponed! This stubbornness is almost similar to his firing of the three VPs (who got reinstated) when he first took office. Some of you may think he is trying to clean up corruption. But I do not think so! He is acting without solid evidence or reliable numbers, and without weighing the consequences of his delays! MP Sheikh Ali's video was a historic eye opener that revealed a side of Abadi we did not know.
guest | 4/1/2018
baghdad gangsters and iranian mullah agents are dividing iraq and ruining life of millions and speaking of constitution ????
guest | 4/1/2018
ayatoollahs in mr buyright ties and suits
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