Iraq Parliament deadlocked over Kurdistan oil budget dispute
![Iraq Parliament deadlocked over Kurdistan oil budget dispute](https://media.shafaq.com/media/arcella/1738056529374.jpg)
Shafaq News/ On Tuesday, Iraqi MP Kazem Al-Fayyad expressed concerns regarding the challenges in passing the amendment to the budget law, describing it as "controversial."
Al-Fayyad told Shafaq News that "there is a division within Parliament concerning the passage of the budget law amendment submitted by the Iraqi government. This amendment has become contentious, making its passage in the upcoming sessions this week or next week difficult."
"Opposition to the budget law amendment comes not only from some independent MPs from the central and southern regions but also from major party bloc members. This has complicated the situation, necessitating comprehensive political understanding and agreement to pass the amendment."
On Sunday, January 19, a parliamentary session broke quorum as MPs left the chamber during a vote on a clause in the federal budget law.
Article 12 of the budget bill includes compensation for the Kurdistan Regional Government (KRG) for production and transportation costs related to oil extraction in the Region.
Earlier today, the Parliamentary Finance Committee announced plans to resume meetings in the coming days to discuss amending Article 12. Committee member Hussein Mu’nis told Shafaq News that the amendment pertains to the costs of producing oil in the Region and overseeing its export mechanisms and financial revenues.
Mu’nis explained that "the budget law calculates the cost of extracting a barrel of oil from Kurdistan at $6, while the amendment submitted by the government estimates the cost at $16 per barrel. This could increase government expenditures for extracting 400,000 bpd from the Region's fields, thereby raising the budget deficit."
Previously, Finance Committee member Jamal Kocher anticipated sending the budget tables in February but noted potential delays in passing the budget due to disputes over Article 12.
Kurdistan Democratic Party (KDP) MP Jayai Timor had earlier stated that "the Iraqi government previously calculated the cost of oil extraction at $6 per barrel, which is very low," noting that "foreign companies operating in oil extraction incur costs reaching $26 per barrel."
In June 2023, the Iraqi Parliament approved a three-year general budget for the fiscal years 2023, 2024, and 2025. This budget, the largest in Iraq's history, was designed to provide a comprehensive financial framework for the mentioned years.
The key figures of the budget include an annual expenditure of approximately $153 billion. The Kurdistan Region was allocated 12.6% of the total budget. However, the execution of this budget has faced challenges due to delays in finalizing key provisions and adjusting budget tables.