Iraqi Oil Ministry Says It Is Following Up on Reports of Continued Oil Smuggling from Kurdistan Region

Peregraf

The Iraqi Ministry of Oil announced today that it is following up on information indicating the continued smuggling of oil from the Kurdistan Region to destinations outside Iraq. The Ministry stated that it holds the Kurdistan Regional Government (KRG) fully legally responsible and reserves the right to take all necessary legal measures.

In a statement released Thursday, the Ministry stressed the urgent need for the KRG to comply with the Iraqi Constitution, Federal Supreme Court rulings, and applicable laws—including the federal General Budget Law. This law requires the KRG to hand over oil produced from its fields to the Federal Ministry of Oil for export, with revenues directed to the public treasury.

The Ministry noted that it has consistently sent official letters and dispatched delegations to the KRG to facilitate the implementation of these obligations, but those efforts have not resulted in compliance.

It also warned that the continued failure to deliver oil in accordance with the amended budget law—passed in agreement with the KRG—would result in serious financial losses for Iraq and harm the country’s international reputation and oil-related commitments.

According to the statement, the lack of cooperation from the KRG has led to a “double loss” for Iraq: not only has Baghdad been unable to export oil produced in the region and benefit from its revenues, but the federal government has also had to reduce production from other oil fields to stay within Iraq’s OPEC quota, which includes oil output from the Kurdistan Region.

The Ministry reiterated the need for the immediate start of oil deliveries from the region in line with the budget law, and warned against any continued evasion of these obligations.