Iraqi government faces $15 billion loss due to suspension of KRG oil exports
ERBIL (Kurdistan 24) – The Iraqi government has incurred a financial loss of approximately $15 billion due to the suspension of oil exports from the Kurdistan Region, according to Dr. Jagar Aziz Harki, an oil and gas expert.
On Tuesday, Dr. Harki revealed to Kurdistan24 that the halt in oil exports from the Kurdistan Region through the Turkish Ceyhan Port has severely impacted both the Iraqi and Kurdistan oil and gas industries.
He noted that the Iraqi government is losing over $900 million monthly due to the suspension, accumulating a total financial loss of about $15 billion.
Dr. Harki attributed the loss of trust from major global oil and gas companies to the Iraqi government's failure to resolve the issue surrounding Kurdistan's oil exports.
This has exacerbated Iraq's political and economic problems on the international stage, particularly as Turkey continues to pressure the federal government to resume Kurdistan's oil exports, which were a significant part of global production and exports before the suspension.
He further criticized the Iraqi government's handling of the oil and gas sector, stating, “The Iraqi government is not working to resume oil exports under the influence of regional countries and seeks to undermine the oil and gas sector in the Kurdistan Region.”
Dr. Harki emphasized that the Kurdistan Region’s oil and gas sector had established itself on the global energy map, accounting for 0.5% of world oil exports before the suspension imposed by the International Court of Arbitration in Paris.
Despite over 90 percent of Iraq's revenue coming from oil, Dr. Harki pointed out that the Iraqi government has yet to pass a comprehensive oil and gas law, reflecting its ineffectiveness in managing the sector.
Kurdistan oil exports have been suspended since March 25, 2023, with no resumption in sight. Prior to the suspension, approximately 450,000 barrels of oil were exported daily through the Turkish Ceyhan Port.