By Nechirvan Barzani
The Wall Street Journal Oct 7, 2007
This August, the Kurdistan Regional Government (KRG) of Iraq passed an oil and
gas law to regulate the oil sector in our region. So far, we have signed eight
production-sharing contracts with international oil and gas companies. We expect
to sign another two in the near future.
We were deeply disappointed by the negative reaction of several officials in
Baghdad to these contracts. In the last several months it has become clear to us
that many in the Iraqi Oil Ministry are locked in a time warp dating back to the
regime of Saddam Hussein, in which Baghdad holds tight control of all the
resources of Iraq and uses these resources to create obeisance and loyalty to
the centre.
The KRG production sharing contracts are fully consistent with the Iraqi
Constitution, which gives the regions of Iraq substantial control over natural
resources. The contracts are also fully consistent with the draft Iraqi oil law
that was agreed to this March, but has yet to be passed by the Iraqi National
Assembly. The Kurdistan region's oil law, passed in August by our parliament, is
100% faithful to the agreed draft of the Iraqi law, and includes provisions for
the KRG to share its oil revenue with the rest of Iraq in the same 83%-17%
ratio.
If we had intended to "go it alone," why would we ever consider passing a law
which requires us to give 83% of the revenues to the rest of Iraq? We waited
five months for the Iraqi Assembly to pass the agreed draft - they have not
acted, and there is no sign that they will act anytime soon. We decided to "lead
from the front."
The Bush administration and Congress have been pressing the government in
Baghdad to move ahead on a fair, transparent and efficient oil law. So have we.
Neither of us have had any success. Thus, we have chosen to pass in our own
assembly the very same law that was agreed to by all parties in March of this
year.
We hope our friends and supporters in the US will understand that this is not an
attempt to usurp the nation's oil resources, but rather our best effort to move
the process forward, leading by example to make these valuable resources work
for the people of Iraq. The resources that can ease the suffering of the people
of Iraq lie beneath our feet.
The Kurdistan Region has achieved great things since the liberation of 2003. We
are proud to be described as the model for the rest of Iraq: tolerant,
democratic, peaceful and working toward economic prosperity. We have been given
a chance to build a bright future after decades of oppression and violence. Our
political system, our judicial system, our physical infrastructure and our
educational system all are in great need of modernisation, but we will persevere
with the help of our friends and by the fruits of our labour.
In 2003, we chose voluntarily and openly to remain part of Iraq, and we will
continue to do so. But does this mean that we have to be held back by the chaos
and bloodshed that dominate the rest of the country? Must we sit idly by,
waiting for Iraqi politicians to waste months debating oil legislation that has
already been agreed upon by the major parties?
We have tried our best to be a loyal ally of the US. We have supported nearly
every major initiative and decision that the US has sought in Iraq - sometimes
contrary to what we consider to be in our best interests. We will continue to do
so because we believe that there is no alternative to maintaining the US
presence in Iraq. We want the US to remain, and we need American help. In return
for our loyalty we ask understanding. We are not a "rogue province" seeking an
early escape from the chaos that has become Iraq. We are a people and a region
that have seen nothing but death, destruction and deprivation from Baghdad over
the decades. Does it surprise anyone that we harbour deep suspicions about
becoming reliant on the capital that has brought us such misery for so many
years?
In the past, oil in the Kurdistan Region has been more of a curse than a
blessing. The people have never benefited from our natural resources. Successive
governments in Iraq have deliberately left our oil in the ground in an effort to
keep our people poor and to deny our aspirations for a better way of life. Now,
after so much suffering, we have a chance to turn this curse into a blessing.
And we are asked to wait while the Iraqi parliament takes its vacation, and then
considers new ways to manage our resources.
The answer is found in the principles of the Iraqi Constitution, the US
Constitution and many others around the world -federalism. This is not just a
concept to us. Federalism means that we have the liberty to develop our
resources under the umbrella, but not the central control, of Iraq. It means
that as 17% of the population we will receive 17% of the wealth, and that we
will accordingly share 83% of our wealth with the rest of the population.
We want peace and prosperity for the rest of Iraq as well. We will contribute
our fair share and more to that goal. But we cannot be asked to sit by and
postpone our aspirations for prosperity in pursuit of a vision of a centralised
Iraq that long ago passed from reality. We are trying to lead by example in all
that we do. Our oil law, and the contracts we have signed, are nothing more than
that.
Nechirvan Barzani is the prime minister of the
Kurdistan Regional Government.
