Wednesday, July 6, 2022

Baghdad

Baghdad calls on oil companies in Kurdistan to sign new contracts with SOMO

 Baghdad calls on oil companies in Kurdistan to sign new contracts with SOMO

Oil facility in Kurdistan. Shafaq news image.

Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil called on oil and gas companies operating in Kurdistan region to sign new contracts with the State Organization for Marketing of Oil (SOMO) instead of the ones signed with the government of Kurdistan.

The new attempt came to have control over oil and gas revenues from Kurdistan region.

According to the statement of the Iraqi Minister of Oil, Ihsan Abdul-Jabbar, on May 7, the Ministry of Oil will begin implementing a ruling of the Federal Supreme Court of Iraq issued last February.

The ruling considered the legal foundations of oil and gas sector in Kurdistan region unconstitutional after talks with the region’s government failed.

According to Reuters, the Iraqi Ministry of Oil appointed a law firm called Cleary Gottlieb Steen & Hamilton LLP, to communicate with oil and gas companies operating in Kurdistan region to begin discussions to have the companies’ operations complied with the applicable Iraqi laws.