KRG Council of Ministers Approves Oil Export Procedures
The KRG Council of Ministers convened at 11:00 AM under the chairmanship of Prime Minister Masrour Barzani, with the presence of Deputy Prime Minister Qubad Talabani, to deliberate on salary disbursements, the preparation of the federal budget law, and the organization of local revenues.
Feb. 5, 2025
ERBIL (Kurdistan24) – The Kurdistan Regional Government (KRG) Council of Ministers has officially decided to initiate procedures for the export of oil following a Cabinet vote, a government source told Kurdistan 24 on Wednesday.
The KRG Council of Ministers convened at 11:00 AM under the chairmanship of Prime Minister Masrour Barzani, with the presence of Deputy Prime Minister Qubad Talabani, to deliberate on salary disbursements, the preparation of the federal budget law, and the organization of local revenues.
Green Light for Oil Exports Following Iraqi Parliament’s Approval
The decision comes in the wake of the Iraqi Parliament’s approval of the federal budget law on Feb. 2, 2025, which included Article 12, outlining the mechanisms for the export of oil from the Kurdistan Region.
The newly ratified budget details several key provisions:
The Iraqi Ministry of Finance will oversee the calculation of sovereign expenditures, production, and transportation costs of oil produced in the Kurdistan Region and received by Iraq’s State Oil Marketing Organization (SOMO) or the Federal Ministry of Oil In accordance with clauses (a) and (b) of this Article.
The cost assessments will be carried out separately for each field by an internationally recognized technical advisory firm, which will be jointly selected by the Iraqi Ministry of Oil and the Kurdistan Region’s Ministry of Natural Resources within 60 days of the law’s enforcement. If a consensus is not reached, the Iraqi Cabinet will assign the advisory entity.
The advisory firm will evaluate production and transportation costs and submit its findings to the Federal Ministries of Oil and Finance and the KRG.
These assessments will then be formally adopted for budgetary purposes. Additionally, prior financial settlements will be adjusted based on historical costs per barrel in accordance with clauses (a) and (b) of this Article. Subsequently, the Iraqi Ministry of Finance will transfer the required payments to the KRG.
The immediate handover of oil produced in the Kurdistan Region to SOMO or the Federal Ministry of Oil In accordance with clauses (a) and (b) of this Article. Meanwhile, the Federal Ministry of Finance will issue an advance payment of $16 per barrel to cover production and transportation costs, subject to final reconciliation based on the findings of the designated technical advisory firm.