PM Barzani hails Erbil-Baghdad oil deal at weekly cabinet meeting

ERBIL (Kurdistan 24) – During the weekly cabinet meeting, the Kurdistan Region Prime Minister Masrour Barzani described the recent agreement between his government and Baghdad on resuming Kurdish oil export to the Turkish port of Ceyhan as an “important achievement,” according to a statement.

The deal is an “important achievement and another step in enhancing relations between the Kurdistan Region and federal government,” Barzani said, commending Prime Minister Mohammed Shia’ Al-Sudani’s efforts to resolve the outstanding issues between the two governments.

The Kurdish region began to export its oil independently after its financial entitlements were cut by Baghdad, Barzani explained.

The premier also hailed the efforts of the KRG delegation that concluded the agreement “without compromising the Kurdistan Region’s constitutional rights,” a statement from his office read.

PM Barzani and Iraqi Prime Minister Mohammed Shia’ Al-Sudani held a joint news conference following the signing ceremony in the Iraqi capital on Tuesday.

Per the new deal, the Iraqi state-owned marketing company, SOMO, will market and export 400,000 bpd of Kurdish crude oil at market prices.

The revenue from Kurdish oil sales will be deposited in a Central Bank of Iraq (CBI) account owned by the Kurdistan Regional Government (KRG) and monitored by Baghdad, according to the agreement.

The agreement will be in effect until a final hydrocarbon law is enacted. At the press conference on Tuesday, both Premiers declared that the principles of the temporary oil agreement would be reflected in a federal hydrocarbon law in the future.

The United Nations on Wednesday welcomed the deal as well, saying the agreement would strengthen “national unity” and boost the country’s economic prospects.