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- TUESDAY, 01-03-2022,PM 7:41
- KARAR AL ASADI
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By: Dr. Bilal Khalifa
Everyone knows that Iraq depends completely for its economy on oil revenues, which amount to 95% of the volume of public revenues, and therefore the oil sector and oil wealth must be given great attention in legislation, laws and political decisions.
The Federal Court issued a royal order to invalidate the oil and gas law for the Kurdistan region, and this means the invalidity of the resulting large contracts with Arab and international companies, and the invalidity means that the government must address the illegal effects that resulted from an unconstitutional law.
More than ten days have passed and the government did not say anything about the issue and how it moved. It did not speak about oil fields that were seized by the region. Rather, the region contracted with companies to invest in those contracts, and the worst thing is that the government wants to buy some petroleum products from its seized fields. Territory, an example is Courmore Field.
The constitution is distinguished by the principle of transcendence, meaning that it is the supreme law of the state, superior to all other laws. The federal constitution must grant the central government broad and supreme powers over the powers of the regions, states, or governorates. The centralization is not affiliated with it. This is on the one hand, and on the other hand, if a constitution or law is legislated to transcend the federal constitution, this means that the region has become, in this part, at least, the center and the holder of the federal authority, and that the central government has become the ruler of the region and the subordinate.
In the unambiguously enforceable constitution, Article 111 stipulates that oil and gas belong to all the Iraqi people, but it hastened to add the phrase (in all regions and governorates), which creates confusion and lack of understanding. (Regions and Governorates). Article 112 stipulated that:
First, the Federal Government is the management of oil and gas extracted from existing fields with governments and producing provinces, and its imports are corresponding to the population distribution throughout the country, with a specific share of the affected territories, Including unfairly by the previous regime, which was subsequently damaged in a way that secures balanced development for the different regions of the country, and this is regulated by law.
Second - The federal government and the governments of the producing regions and governorates shall jointly formulate the necessary strategic policies for developing the oil and gas wealth, in a manner that achieves the highest benefit for the Iraqi people, adopting the latest techniques of market principles and encouraging investment.
Notes on the Oil and Gas Law in the Region
1 - The type of contract between the region and foreign companies is partnership contracts, which means the authority of foreign companies in the oil fields, and since the contract in the south is service contracts, and partnership contracts is a neglect of oil ownership in favor of foreign companies, And Article (111) of the Iraqi constitution states that oil and gas belong to all Iraqis, and since the regional government represents only 12.7% of the population, then it acted in something that did not belong to it and not within its powers.
2 - Article (112) of the constitution in (first) of it indicated that the oil management of the current fields (that is, those undiscovered before the adoption of the constitution) and this is the point on which the region relied in its oil legislation, including the oil and gas law, but it contains several observations:
A - That The management of oil fields and new explorations, and as indicated by the above article of the Iraqi constitution, has shown us that the management is carried out in coordination between the federal Iraqi government and its representative, the Ministry of Oil, and between the region or the provinces. He did not completely obey the government or the ministry in this matter.
B - The current word that the region pays lip service to, they explain it with the fields that were discovered before 2005, i.e. approving the constitution and voting on it. Which contracted with the Emirati Crescent Company to invest it, and it is a gas affiliated with Kirkuk and its production is estimated at 300 million standard cubic feet per day. Another example is the Khormala field, whose production is estimated to be one third of the region’s production, a field that was seized from the federal government in 2008. It is noteworthy that the federal government filed a lawsuit Against the region on some fields and took the side of silence in all the oil issues that pertain to the region and in which the constitution or the properties of the Iraqi people have been violated, which is oil and gas.The largest oil theft in the history of Iraq is the Shekhan field, which belongs to the district of Sheikhan in Nineveh Governorate (Mosul), and the volume of this field is 14 billion barrels of oil, and that the region contracted with the Calves Keystone Company (British nationality) in 2007 to invest it, which has a duration of 25 years, and the local government of Mosul Sakth and the central government Sackh too.
3 - If we concede and say what the region says about their right to manage the oil file for the new fields, because the old ones are definitely and never their right, then the constitution said (management) and did not say that it has ownership or the right to dispose of it, and as we said earlier, because the constitution with its article (111) said that oil Gas belongs to everyone, and therefore the right of disposal and ownership belongs to the Federal Government and the Federal Ministry of Oil.
4 - The constitution acknowledges that the ownership of oil and gas is for all Iraqis, and this obliges the region or others to return an order to the federal government, and that any action outside the matter is tantamount to stealing all of Iraq.
5 - Oil is a federal wealth, regardless of where it is located.
6 - The federal general budget depends on 95% of oil revenues and its sale is in the dollar currency, and therefore the dollar constitutes the bond and the only cover for the local currency, and therefore any negligence in it or mismanagement reflects negatively on the local currency and thus affects the citizen and the events of raising the value of the dollar at the end of 2020 is good. Proof of that.
7 - Iraq before 2003 was a simple and one state, but after that it became a federal federal state and according to the 2005 constitution. It did not consist of two governments and united.
8 - The region tends to secession and acts with the federal government, and therefore giving the authority to manage the oil encourages them to secede more, and this is what actually happened because the region began to act as an independent state in everything.
9 - Exporting oil, as well as contracting with oil companies without the knowledge of the federal government, means breaking the sovereignty of the state, weakening it internally and breaking its prestige externally.
10 - The representative of Basra, Uday Awad, indicated in the documents that the region exports oil to Israel, and that the Federal Penal Code No. (111) of 1969 in force in Article No. (201) which states: “Anyone who favors or promotes principles shall be punished with death.” Zionism, including Freemasonry, or affiliation with any of its institutions, or assisting it financially or morally, or working in any way to achieve its purposes.”
11- Article (111) of the constitution stipulates that oil and gas are the property of all the Iraqi people, and he did not say the ownership of the Iraqi state, and this is an excellent expression that the central governments or the regional government do not own the oil, but are entrusted with it. The region's oil belongs to (all the Iraqi people) and not just to the region.
12 - Article (112 - Second), which stipulates that the federal government, the governments of the region and the producing governorates together draw up the strategic policies necessary for the development of oil, and therefore the behavior of the region is contrary to the Iraqi constitution.
13 - The draft Federal Oil and Gas Law was submitted in 2006 for voting and discussion, but despite reservations about some of its articles, several blocs and parties opposed its approval, as the constitution recommended its legislation, but many parties opposed its approval and from all three components of Iraq.
14 - The region is not only the constitution that has not adhered to it, but several laws, including the Federal General Budget Law and for all previous years, where it was decided that the region must hand over to the federal government a portion of its oil sales, but the region did not comply with that.
15- The region was not satisfied with violating the constitution and legislating an unconstitutional law, and selling oil without giving the federal financial treasury and the federal government any dinars, but the matter went beyond asking the federal government to pay money to foreign companies that the region contracted with without Baghdad’s knowledge and contrary to the constitution.
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