Erbil, Baghdad near agreement on resuming oil exports

Shafaq News/ The Kurdish Ministry of Natural Resources announced, on Thursday, that a delegation from the Iraqi Oil Ministry is currently in Erbil to discuss several issues.

Kurdistan’s Regional Government (KRG) expressed no objection to transferring the full revenues of the Region's oil to the federal treasury. However, a single obstacle remains before resuming oil exports from the Region.

Kamal Mohammed, the KRG Acting Minister of Natural Resources, stated that he expects a near resolution with Baghdad regarding the resumption of oil exports, clarifying that “the Region has no issue with exporting oil through the state-owned SOMO company and transferring all revenues to the federal treasury. The issue lies in the cost of oil extraction, as companies are not satisfied with the allocated rate of $6 per barrel.”

Mohammed mentioned that “oil companies have been pressuring the Iraqi government to resume exports, and a delegation from Baghdad is currently in the Region to discuss the matter.”

He also emphasized that the KRG has provided full facilitation to resume exports, and the contracted companies have been taken to Baghdad three times. However, these companies cannot produce oil at the allocated price, although a suitable solution is expected soon.

Last week, Minister Mohammed revealed that since September 2nd, the Kurdistan Region has been producing 140,000 barrels of oil per day, representing a 50% reduction in production. He noted that the halt in oil exports has cost the Region billions of dollars, while Iraq has lost over $16 billion due to the stoppage.

The reduction in oil production rates in the Kurdistan Region was requested by Baghdad as part of Iraq's commitments to OPEC+.