The Kurdistan Regional Government (KRG) signed an agreement with Deloitte, the largest professional and financial services company in the world, to conduct an audit of the Kurdistan Region’s oil production, exportation, and revenues.
Bringing Deloitte in is part of the KRG’s economic reform plan and to increase transparency in the oil sector. Most of the world’s oil companies have dealt with and worked with Deloitte.
“Signing this contract and tasking an independent world famous company, one of the four best-known companies in the world with fame, position and expertise, with auditing in the Kurdistan Region is a very serious and important step of the KRG to provide more transparency in oil and gas revenues and expenditures. It is a sign of the KRG’ seriousness and commitment to reform and transparency,” reads a statement published by the KRG, citing comments made by Prime Minister Nechirvan Barzani.
“The KRG will share the auditing reports of this company according to the working standard in this sector to relevant departments and citizens, and of course will take needed action based on the recommendations of these reports.”
Deloitte will audit all aspects of the oil and gas industry in the Kurdistan Region, including production, exports, sales, internal use, refineries, and bonuses, the statement detailed.
According to the agreement, from now on no Ministry of Natural Resources (MNR) report will be published without first being reviewed by Deloitte.
“The independent auditing project for all the KRG oil and gas revenues and expenses by an international auditing company was approved in the last Council of Ministers meeting. This independent auditing is for all the KRG oil production and sales,” Safeen Dizayee, spokesperson for the KRG, told Rudaw.
According to Dizayee, four large financial service and auditing companies were invited to submit bids and “The chosen company independently will audit all the processes of production, marketing, and oil revenues. And will submit a monthly report.”
Deloitte will audit all operations data, production and revenues of all oil companies since they began operating in the Kurdistan Region. The MNR will also provide all of their data to Deloitte.
Deloitte is a multinational professional services firm headquartered in New York City. It is the largest professional services network in the world by revenue and number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services for more than 244,400 clients globally.
The agreement signed between representatives of the KRG, Prime Minister Nechirvan Barzani Prime Minister, Deputy Prime Minister Qubad Talabani, and representatives of Deloitte, Neil Hargreaves and Robert O'Hanlon. Other KRG officials were also present, including the head of the audit agency and the head of the integrity commission.
The KRG is also in the final stages of signing a similar contract with Ernst and Young, another top international auditing company, to complete the process of auditing the oil and gas industry, the KRG’s statement said.