The Spokesman
Kurdistan Regional Government
Erbil, Kurdistan Region

11 September 2007

The Kurdistan Regional Government (KRG) would like to make it clear that Dr Shahristani's recent remarks about the legality of the KRG's oil and gas contracts are totally unacceptable. His views are irrelevant to what the KRG is doing legally and constitutionally in Kurdistan. Dr Shahristani should concentrate on making a positive contribution to the country, rather than undermining the constructive work that the KRG is carrying out for the benefit of all the Iraqi people.

Dr Shahristani was already strongly advised to stay out of issues over which he has no authority. But once again he has repeated his false mantra of “it is illegal”. Unfortunately this has been his way of dealing with the legitimate concerns of the hard working oil union members in the south, with the achievements of the KRG or with any other organisation that he does not like. Dr Shahristani has no authority to question the legitimacy of contracts awarded by the KRG acting under the powers of the newly enacted law passed by the unanimous decision of the Regional Parliament and according to the new Iraq constitution.

We suggest that the Minister concentrates on his real task of preventing illegal oil smuggling under his watch, which is crippling the Iraqi economy, and removing the unconstitutional obstacles that he has created against the agreed draft oil law, so that it can go to the Iraqi parliament in its agreed form. As far as we know this would be consistent with government policy, but if he cannot do that, he should do the decent thing and step aside as the Iraqi oil industry deserves better.

The KRG would also like Dr Shahristani to explain why, during his frequent visits to some neighbouring countries he recommended to their authorities that they should not supply fuel products to KRG, as in his view “this will undermine the Oil Law in Iraq”? What is the connection between the KRG’s fuel supply and the Oil Law? We can only conclude from his behaviour that he has a personal grudge or vendetta against the Kurdish people.

On the Oil Law, we would like to remind Dr Shahristani that most of Saddam’s oil-related laws are inconsistent with the new federal constitution and cannot apply. No company will dare to sign agreements under such laws. Furthermore, all Saddam’s laws have been nullified in Kurdistan under the newly passed oil and gas law of the Region. Once again Dr Shahristani appears to prefer Saddam’s laws over laws enacted according to the new constitution. The answer is not to stick to Saddam’s laws, which is merely an act of desperation, or to invite the anti-oil law campaigners to conferences to attack the constitution. The answer is to get on with the agreed draft oil law and present it without changes to the parliament. That way we will all get on with the task of developing the oil industry for the benefit of the people.