Iraqi Parliament Approves Budget Amendment, Clearing Path for Kurdistan Oil Exports

The session, held on Sunday, saw 176 members in attendance, with a majority vote securing the amendment’s passage, particularly tackling Article 12, which regulates oil export agreements between Erbil and Baghdad.

A session of the Iraqi Parliament. (Photo: Kurdistan24)
A session of the Iraqi Parliament. (Photo: Kurdistan24)

Feb. 2, 2025

ERBIL (Kurdistan24) – In a landmark decision, the Iraqi Parliament has approved a critical amendment to the federal budget law, paving the way for the resumption of Kurdistan Region’s oil exports.

The session, held on Sunday, saw 176 members in attendance, with a majority vote securing the amendment’s passage, particularly tackling Article 12, which regulates oil export agreements between Erbil and Baghdad.

Sipan Sherwani, a member of the Kurdistan Democratic Party’s (KDP) parliamentary bloc, confirmed to Kurdistan24 correspondent Dilan Barzan that this legislative move eliminates all legal obstacles preventing the Kurdistan Region from exporting its oil.

Under the new framework, Kurdistan will supply 400,000 barrels of oil daily to the State Organization for Marketing of Oil (SOMO), ensuring a structured mechanism for revenue generation and distribution.

The amendment delineates mutual obligations between the federal and regional governments.

While the Kurdistan Region commits to specific oil quotas, Baghdad is mandated to fulfill its financial commitments, ensuring that Kurdistan receives its allocated budget entitlements.

This agreement aims to establish stability and transparency in the oil revenue-sharing process, reducing long-standing disputes.

Implementation guidelines for the revised budget law will be distributed to relevant authorities in the coming days to ensure compliance and effective execution.

The approval follows a productive meeting on Jan. 31 between Prime Minister Mohammed Shia al-Sudani and parliamentary bloc leaders, where consensus was reached to proceed with the budget amendment as proposed by the Council of Ministers.

 

Kurdistan24 Correspondent Dilan Barzan contributed to this report.