Erbil, Kurdistan – Iraq (mnr.krg.org) – The Kurdistan Regional Government’s Ministry of Natural Resources (MNR) welcomes Deloitte’s completion of its first independent audit of the KRG’s oil sector. Deloitte’s audit of oil export, consumption and sales from January to June 2017 “did not find any misstatements” in the data, it wrote in its report. In carrying out the review, Deloitte obtained and checked data from all relevant stakeholders, such as MNR, oil producers, refineries, oil traders, and the pipeline operator. We look forward to Deloitte’s completion in the future of audits for the second half of 2017 and the years 2014 to 2016.
MNR also looks forward to the review in the near future, by auditing firm EY, of international oil company bonuses paid to the KRG under production sharing contracts (PSCs). The review will verify PSC bonuses received by the KRG, KRG’s bonus entitlement, and how the bonuses have been allocated. The KRG has a strong track record, since the 2007 Oil and Gas Law was unanimously passed by the Kurdistan Region Parliament, of publishing its PSCs and publishing the poverty-alleviation and social development programs to which PSC bonuses are applied. These include the funding of schools, universities, hospitals, water projects, and housing for the victims of the Anfal campaigns.
Deloitte’s independent audit was commissioned by the KRG Regional Council for Oil and Gas Affairs. The Council operates under the 2007 Oil and Gas Law, to which the MNR reports oil revenue and production. The objective of bringing on board Deloitte was to ensure that all published figures are thoroughly checked and validated by an independent and credible entity devoid of any conflict of interest.
With this process, the KRG can demonstrate its commitment to transparency in the reporting of oil production and revenue, and the reviews by Deloitte and EY will help to set a precedent to further increase transparency and strengthen independent auditing and verification in the Kurdistan Region.
Please click here for Deloitte’s review of data for January to June 2017 (in English, Kurdish and Arabic)