KurdistanObserver.com

Kurdistan Prime Minister Inaugurates Oil Drilling Operation

By Falah Mustafa Bakir 

Kurdistan Regional Government 

KRG Prime Minister Nechirvan Barzani inaugurated a project to drill for oil by Turkish and Swiss companies at Taqtaq, near Koysinjaq, east of the regional capital Erbil.

Deputy Prime Minister Omer Fattah, company representatives, and other distinguished guests attended the ceremony.

Taqtaq, Kurdistan-Iraq

Speech of Prime Minister Nechirvan Barzani, Kurdistan Regional Government, Sunday, 14 May 2006

Distinguished guests, ladies and gentlemen, I would like to welcome you all.  

It is a pleasure to be here. I am pleased to come here today to participate with you in this important event that will significantly contribute to the development of our economy.

On behalf of the Kurdistan Regional Government and the people of the Kurdistan Region I would like to welcome you all to participate with us today. I would like to especially congratulate and thank all those who have worked so hard on this project.

Since the 1960s it was known that Taqtaq has oil but no Iraqi government moved to exploit the oil resources of the Kurdistan Region outside of the Kirkuk area. The regime of Saddam Hussein and of those before him aimed to weaken the Kurdistan Region.

Our economy was neglected and remained underdeveloped compared to other parts of the country.

Saddam Hussein used the oil resources of Kirkuk to destroy thousands of our communities, dislocate and disappear our people, and to attack us with chemical weapons. In the hands of Saddam Hussein’s regime, oil was not a blessing; it was a curse, a cause for extreme suffering of our people.

Following the liberation of Iraq this deplorable situation has dramatically changed. For the first time in our history we have a country with a constitution that finally admits and affirms that Kurds and Arabs are partners in a new Iraq. Representatives of the Kurdistan Region are playing a leading role in rebuilding the country. As you know, President of Iraq Jalal Talabani and other colleagues are working seriously to build a government of national unity.

Article-108 of the Constitution of Iraq affirms that the federal government and the oil producing regions together will manage oil fields currently in commercial production. The revenue of this oil is to be distributed equitably among all regions and all people of Iraq.

But new oil fields, those not at commercial production at the time of the drafting of the Constitution, will remain the management responsibility of the regional governments where they are located.

These governments will make the management decisions regarding investments and also the contractual arrangements regarding exploration and production.

While the Kurdistan Regional Government has many programs and initiatives, none is more important for our future than securing the value of our energy resources in the service of our people. We do not see oil only as wealth for economic growth and the prosperity of our people. We see it as a major factor in the stability of our region and the country, and for the realization of peace and prosperity.

As we have announced in our Cabinet program, increasing our capacity to provide secure energy is a top priority. Since 1991 we have suffered immeasurably due to lack of energy supplies.

We had to always rely on others who had the power to restrict the supply of energy in the form of electricity and fuels to harm us. At times, our people resorted to cutting trees to meet their basic need which caused further deforestation and damaged our environment.

According to the new Iraqi constitution we have all the rights to explore and produce the oil of our land and to exploit it to meet the peaceful needs of our people. We secured these rights through the sacrifice and struggle of our people, the result of thousands of people who have shed their blood in martyrdom for this land, and through the thousands who were displaced. We shall, therefore, never be prepared to surrender these rights.

All our activities and steps in this regard shall be in accordance with the provisions of the Constitution of Iraq. Our activities and steps will benefit both the Kurdistan Region and the entire country.

We believe the Constitution secures the rights of all groups in all parts of Iraq. The exploration work being done in new fields will pave the way for a new dynamic of increased production and fair sharing of benefits for all Iraqis.

We began drilling new wells last Fall and we are expecting good results. Our determination and action are based on the fact that we have been given a valuable gift in order to improve the lives of our people.

We have worked hard to establish personal security and political stability so that under the auspices of the Kurdistan Regional Government we can work hard on this project to improve the lives of our people.

If we had acted on the urging of some people to wait until the situation in Baghdad is clarified, no practical steps would have been taken to explore and exploit our oil resources to serve our people and the rest of the country. Let me make clear and affirm that despite media reports to the contrary, our activities and steps have been taken in coordination with the Ministry of Oil in Baghdad and we shall continue in this mode of operation.

Baghdad has been a full partner and will continue to be so in the development of oil fields in the Kurdistan Region. Contrary to what some have tried to assert, the development of oil in the Kurdistan Region will lead to strengthening the national economy and consolidating the voluntary union of Iraq.

I would like to thank the Government of Turkey for supporting the economic growth of the Kurdistan Region through this contract, which is in the interest of both Turkey and Iraq. Turkey has played an important role, and will continue to have an important role, in supporting the economy of the Kurdistan Region.

Special thanks to Turkey’s ‘Ganel Enerji’ and to Switzerland’s ‘Addax’ for the professional interest and expertise they bring to this project.

We remember very well Turkey as an important neighbor during difficult times. We view with appreciation and thanks Turkey’s support of the protective ‘No Fly Zone’ and the assistance provided under Operation Provide Comfort. With a view toward our mutual good fortune, we would like Turkey, as they have done in the past, to be first in providing protection for our people, and continue to play an important role in supporting the development of our economy.

While we are developing this natural resource, there are certain principles we have to bear in mind. This resource is for all of us. Therefore, we are engaging qualified and experienced companies to provide the latest technology and expertise to help us in new, creative, and innovative ways.

We shall manage our oil effectively and transparently. While oil is an important asset for economic growth, we do not want to ignore other important aspects. We must keep in mind that as we explore and exploit our natural resources, we must not damage our environment.

The oil deep underground is not only for current generations, but for all future generations. Therefore, we must proceed in a manner that protects our natural resources for the benefit of the future of the Kurdistan Region.

Although our needs are great, we must conduct ourselves in ways that maximize the benefits for today and for the unforeseeable future. We shall work transparently to develop our economy.

We shall always work by caring about our people, our land, and the economic environment of the Kurdistan Region. We shall work to provide more and better services to all our people. To pursue these aims and realize our goals and objectives, the guarantor will be our management of the benefits from our natural resources.


Finally, I would like once again to offer my thanks and appreciation to all those who worked hard on this project to bring it to the level of success we observe today.

Special thanks to Mr. Dilshad Abdulrahman of the General Enterprise for Special Projects in Suleimaniyah, and to all the engineers and technicians, for your hard work and success.

I wish you further success in your efforts. I thank you for your participation and contribution to the reconstruction and development of the Kurdistan Region.

Again, you are all very welcome. Thank you.