KRG clarifies its contribution to implementing Iraq’s commitment to OPEC agreement

The Kurdistan Regional Government (KRG) on Thursday affirmed that it has committed to reducing its crude oil production in light of the decisions made in OPEC+ meetings at “fair” rates consistent with the oil produced from its fields.

ERBIL (Kurdistan 24) – The Kurdistan Regional Government (KRG) on Thursday affirmed that it has committed to reducing its crude oil production in light of the decisions made in OPEC+ meetings at “fair” rates consistent with the oil produced from its fields.

This comes in response to the statements made by Federal Oil Minister Ihsan Abdul Jabbar, in which he claimed during the CWC Iraq Petroleum conference that “the Kurdistan Region has not been contributing to OPEC+ cuts.”

KRG spokesperson Jutyar Adil said in a statement that the region’s production of crude oil does not exceed 10 percent of the total production of Iraq.

Adil explained in the statement that the “KRG has no objection to the continuation of production reduction in accordance with the fair rate that has been agreed, provided that the federal government is fully committed to covering the dues and expenses KRG loses as a result of reduced production levels.”

“Regarding KRG employees’ salaries, compensation for retirees and other benefits, the amount allocated by the Federal Ministry of Finance has also been reduced from 453 billion dinars to 320 billion dinars per month,” Adil added, highlighting the significant decrease in non-oil revenues due to the COVID-19 pandemic.

“The Federal Government has not paid KRG employees’ salaries for May, June, and July 2020.”

The KRG spokesman also noted the “agreement was previously reached in Baghdad on April 18, 2020, between the federal government, and KRG,” which “stressed the need to take into account fairness in determining the rate of reduction in the KRG’s crude oil production, so that it is based on the quantity produced by the KRG in comparison with the total production of Iraq, and that this reduction does not cause additional significant financial damage to KRG.”

Read More: Erbil, Baghdad agree to cut oil output amid OPEC+ deal

Editing by Karzan Sulaivany