The Ministry of Natural Resources (MNR) has published its Annual Financial Report for 2013, a detailed and comprehensive guide to the financial operations of MNR. The report includes revenue figures from crude oil production, local crude oil sales, the selling of refined products, and bonuses and capacity-building support derived from the KRG's production sharing contracts with international oil companies.
Also detailed are MNR’s operational expenditures and overheads as well as the funding of a significant number of projects managed by the Kurdistan Regional Government (KRG) and by the individual governorates of the Region.
Costs for the purchase of diesel, kerosene and benzene for use in the Region’s power plants, in local industry and agriculture, and in people’s homes are included in the report.
Because it is the first of its kind, the 2013 report also contains comparative earnings and expenditure tables for the six previous years. Nevertheless, for completeness MNR will soon publish separate annual financial reports for each of the years 2007-2012.
From 2007-2013, MNR created gross revenue of US$9,714,331,861. Its gross expenditure over the same period amounted to US$8,794,110,220. Of this, after costs of refining, transportation and logistics, some US$5.85 billion was spent on projects for the Kurdistan Region.
The revenues derived to date have been within the limits of the 17% crude oil refining and internal consumption rights of the Kurdistan Region and are being used to fund the provision of electricity, new hospitals, fresh water units, housing for Anfal victims, new schools, universities and roads, and to help diversify the economic base through agriculture and tourism.
The report also draws attention to the fact that due to economic sanctions on the KRG by Baghdad, the KRG has under utilized its entitlement to 17% of Iraq’s crude oil refining and internal consumption since 2007. The data show the KRG has under utilized its quota by around 98 million barrels.
Minister of Natural Resources Ashti Hawrami said the publication of the Annual Financial Report highlighted the important work of MNR in underpinning the social and economic wellbeing of the people of the Kurdistan Region.
Minister Hawrami said: “Since the KRG passed its oil and gas law in 2007, MNR has presided over the impressive growth of the oil and gas industry in the Region, generating billions of dollars that have benefitted each and every citizen of Kurdistan, and also those of the rest of Iraq.”
He added: “Thanks to the progressive energy policies pursued by the KRG since 2007, oil and gas have become a key source of our future social, economic and political strength.Our policies will continue to ensure that management of the Region's revenues and economic independence are firmly established and managed locally and professionally, as provided for under the federal Constitution.”
To see the full version of the Annual Financial Report for 2013, please click here.