KRG to discuss outcome of negotiations on Iraqi hydrocarbon bill

ERBIL (Kurdistan 24) – The Kurdistan Regional Government (KRG) Council of Ministers is set to convene on Wednesday and discuss the outcome of negotiations between the Kurdistan Region’s delegation with their Iraqi counterparts on drafting an oil and gas bill, according to a statement.

The discussion comes as a KRG delegation has recently visited Baghdad to discuss the bill with Iraqi energy officials, with whom they agreed to form a number of committees to finalize the bill.

The weekly cabinet session will be chaired by Prime Minister Masrour Barzani in the presence of Deputy Prime Minister Qubad Talabani in Erbil, a KRG statement read.

In the absence of an oil and gas law, Iraq relies on the 1970s Ba’athist-era legislation to regulate its oil and gas sector.

The KRG officials have called on the Iraqi government on several occasions to draft the bill in order for the parliament to enact the legislation.

Managing oil and gas has been a contentious issue between Erbil and Baghdad for over a decade.

Producing an average of 3.5 million barrels of oil per day, more than 90 percent of Iraq's revenues come from oil sales.

Prior to the stoppage of its oil sale on March 25 at the request of Iraqi authorities, the Kurdistan Region used to export 450,000 barrels of oil on a daily basis.

Beginning in June, the Region transfers 50,000-60,000 barrels of oil to the Iraqi Ministry of Oil as part of a new arrangement between the two governments in order to market the Kurdish oil through the state marketing company, known as SOMO.