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Iraq''s Kurdistan region begins pumping oil for exportation

IRBIL, June 1 (KUNA) -- Iraq's Kurdistan regional government began on Monday to pump oil to the northern station "Khormalah" where it is expected to be exported to the outside world.
The pumping began in a ceremony attended by Iraqi President Jalal Talabani, Kurdish officials, however without the presence of Iraqi Oil Minister Hussain Al-Shahristani.
Iraq's Kurdistan ministry of natural resources said in a statement that "the exported oil will be sold by Somo Company which will be in charge of marketing Iraqi oil," noting that "financial returns will go into the federal government accounts for the benefit of all Iraqi people." Regarding the legality of oil companies contracts with Kurdistan region and the Iraqi central government, President Talabani told reporters on the sidelines of the ceremony that "the contracts signed by the regional government are lawful and constitutional." The Iraqi leader added that there was an agreement between the Iraqi government which states that in the case of failure by the Iraqi parliament to approve oil and gas law as of March 2007, the provincial government has the right to sign contracts with the oil and gas companies.
In previous meetings the agreement was voted on and approved by the Iraqi cabinet, President Talabani added.
Last May, Kurdistan's ministry of natural resources announced that it will start exporting 100,000 barrels of crude oil in June.
Kurdish officials say that the government hopes to produce 250,000 barrels of oil per day by mid-next year and one million barrels per day in two to three years time. (end) sbr.mb KUNA 012225 Jun 09NNNN