KRG in­vests in min­er­als as oil rev­enue de­creases

The Kurdish Globe - - NEWS -

The Kur­dis­tan Re­gional Gov­ern­ment (KRG) Ministry of Nat­u­ral Re­sources (MNR) re­leased its monthly re­port for the Re­gion’s May crude oil ex­port ear­lier this month.

Ac­cord­ing to the MNR re­port, the KRG ex­ported 15,904,271 bar­rels of crude oil in to­tal, an av­er­age of 513,041 bar­rels per day. The ex­ports went through the Kur­dis­tan pipe­line net­work to the port of Cey­han in Turkey and gen­er­ated a $390 mil­lion profit.

About $59 mil­lion out of the $390 mil­lion was given to oil com­pa­nies in the Kur­dis­tan Re­gion in May.

Based on the re­port, “The to­tal re­tained by the KRG was $315 mil­lion… and $75 mil­lion was al­lo­cated to six con­trac­tors and ship­pers ac­cord­ing to their PSC en­ti­tle­ment and to pay down past re­ceiv­ables.”

“The buy­ers of the KRG crude oil lifted 18 car­goes ac­cord­ing to the vol­umes al­lo­cated to them un­der their con­tracts, of which [four] car­goes (3,797,461 bar­rels) were al­lo­cated against pre­vi­ous debts,” the re­port added.

In April, the KRG ex­ported 15,356,651 bar­rels of crude oil in to­tal, gen­er­at­ing $376 mil­lion.

On June 1, the MNR re­leased a state­ment invit­ing “ex­pres­sions of in­ter­est from qual­i­fied in­ter­na­tional min­ing com­pa­nies for the Min­eral Ex­plo­ration & In­vest­ment in the Kur­dis­tan Re­gion-Iraq.”

The MNR re­port iden­ti­fied seven prospec­tive blocks for in­vest­ment: two blocks in Duhok, two in Er­bil and three in Suleimaniya.

Ac­cord­ing to the state­ment, the Kur­dis­tan Re­gion’s min­eral pro­file is char­ac­ter­ized by the oc­cur­rence of di­verse metal­lic min­eral de­posits such as Lead (Pb), Zinc (Zn), Cop­per and oth­ers.

In Jan­uary 2014, the Iraqi gov­ern­ment, led by thenPrime Min­is­ter Nuri alMa­liki, cut off the Kur­dis­tan Re­gion's pro­por­tion of the fed­eral bud­get.

The bud­get cut in­di­rectly en­cour­aged the au­tonomous re­gion to sell crude oil in the world mar­ket in­de­pen­dently.

Low oil prices have ex­ac­er­bated the fi­nan­cial cri­sis in the Kur­dis­tan Re­gion, re­sult­ing in a three month de­lay of pay­ment for civil ser­vants in 2015 and one month in 2016.

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