KRG Delegation, Iraqi Oil Ministry Discuss Outstanding Disputes in Baghdad

ERBIL (Kurdistan24) – A Kurdistan Regional Government (KRG) delegation held a meeting with officials from Iraq’s Oil Ministry on Tuesday in Baghdad to address two unresolved points of disagreement, according to Kurdistan24’s correspondent in the Iraqi capital.

Reporter Shvan Jabari said the talks focused on key financial and contractual issues between the two sides. The KRG is seeking a fee of $1 to $3 per barrel for transporting oil from production fields to export pipelines at Turkey’s Ceyhan port, a demand the Federal Oil Ministry has so far rejected.

The delegation also conveyed the concerns of international oil companies operating in the Kurdistan Region. The companies have called for a comprehensive agreement guaranteeing a payment of $16 per barrel. However, the Federal Oil Ministry has declined to commit to such an arrangement, arguing that assurances to the companies fall under the authority of the KRG’s Ministry of Natural Resources.

Following the talks, the KRG delegation is expected to return to Erbil on Tuesday night to present the outcomes at the Council of Ministers meeting scheduled for Wednesday. The delegation will then head back to Baghdad for continued discussions with the federal authorities.

A delegation from the KRG, led by Kamal Mohammad, Minister of Natural Resources, and Umed Sabah, President of the Diwan of the Council of Ministers, visited Baghdad on Tuesday to meet with the Federal Oil Ministry.

Oil exports through the Iraq-Turkey Pipeline have been suspended since March 2023 following a ruling by the International Chamber of Commerce (ICC) that halted independent Kurdish oil sales. Oil exports have long been a contentious issue between the KRG and the federal government, impacting the region's economic stability and development.

The suspension has significantly affected the KRG's revenue, which heavily depends on oil exports. This has led to financial challenges for the region. Efforts to resolve the issue through negotiations between the KRG and the federal government are ongoing.

Additionally, the Deputy Speaker of the Iraqi Parliament, Shakhawan Abdullah, launched a scathing critique of the federal government on Sunday, accusing it of intentionally delaying salary payments to the Kurdistan Region’s public sector employees and taking pleasure in their hardships.

His remarks came as the first installment of the long-overdue June salaries was finally transferred, highlighting a persistent and deeply damaging issue that Kurdish leaders have repeatedly condemned as a tool of political pressure and a violation of constitutional rights.

The delayed salary payments have caused significant hardship for public sector employees in the Kurdistan Region, exacerbating financial instability and deepening mistrust between the KRG and the federal government. This ongoing dispute underscores the urgent need for a sustainable resolution to ensure economic stability and uphold constitutional obligations.