Peregraf
The Iraqi parliament has approved an amendment to the budget law today, paving the way for the resumption of oil exports from the Kurdistan Region of Iraq.
"The proposal was approved by the Iraqi parliament as it was sent by the Iraqi government, meaning that the cost of production and transportation of oil will be allocated at $16 per barrel by the Iraqi Ministry of Finance," Kurdish MP Dilan Ghafoor told Peregraf.
The Kurdistan Regional Government (KRG) and oil companies have expressed satisfaction with the allocated amount. The increase in production and transportation costs is expected to facilitate the resumption of oil exports to international markets.
The $16 per barrel allocation will remain in place until a specialist company—appointed within 60 days by agreement between the KRG and Iraqi Federal Government —conducts a fair assessment of the actual production and transportation costs in the Kurdistan Region's oil fields.
According to the amendment, the oil will be handed over to the Iraqi State Organization for Marketing of Oil (SOMO), with all revenue returning to the Iraqi treasury.
Oil exports from the Kurdistan Region and Kirkuk to world markets have been suspended since March 25, 2023, following a decision by the International Court of Arbitration in Paris in response to a complaint filed by Iraq against Türkiye.