Al-Azm Alliance urges action on $18B oil export loss

Shafaq News/ On Monday, the Al-Azm Alliance head, Muthanna al-Samarrai, called on Iraq’s parliament to urgently pass budget amendments to address the $18 billion economic losses caused by the suspension of oil exports from the Kurdistan Region.

“The oil sector is the backbone of Iraq’s economy,” al-Samarrai stated, warning that “the ongoing export halt, along with a partial suspension of Kirkuk’s oil, has cost the country over $18 billion in recent months.”

He attributed the export halt to “technical issues” surrounding production and transportation costs, as well as outstanding payments to international oil companies operating in the Kurdistan Region.

Al-Samarrai highlighted the disparity in production costs, noting that “Basra oil fields average $6 per barrel, whereas some fields in the Kurdistan Region exceed $20 per barrel.”

“The $16 production cost referenced in the proposed budget amendment is only a preliminary figure, subject to review by advisory bodies and the Federal Board of Supreme Audit.”

The Al-Azm Alliance leader underscored the urgency of passing the amendment to stabilize Iraq’s economy, address fiscal deficits, and ensure oil revenue provisions are upheld.

“Oil exports are managed through the State Oil Marketing Organization (SOMO) in accordance with constitutional guidelines and Federal Supreme Court rulings.”

Al-Samarrai concluded by urging lawmakers and coalition leaders to support the budget law amendment, stressing that immediate action is essential to safeguard Iraq’s economic stability.

Since the suspension of Kurdistan Region oil exports on March 24, 2023, the Federal Oil Ministry has compensated for the 400,000-barrel-per-day shortfall by increasing exports from southern provinces to maintain Iraq’s OPEC production quota.