Economy

Kurdistan Region pushes to restart oil exports amid financial strain

The statement also highlighted that the KRG has handed over more than 11 million barrels of oil to the federal government in good faith, “but has not received any payments to fulfill the financial entitlements of oil-producing companies.”

Kurdistan 24 2024/03/26 14:44

The logo of the Ministry of Natural Resources of the Kurdistan Regional Government (KRG). (Photo designed by Kurdistan 24)

Kurdistan KRG Iraq Resumption of Oil Exports

ERBIL (Kurdistan 24) - The Ministry of Natural Resources of the Kurdistan Regional Government (KRG) issued a statement on Tuesday, March 26, regarding the KRG’s efforts for resumption of oil exports.

"The Kurdistan Regional Government (KRG) and the Iraqi Prime Minister have initiated efforts to resume oil exports," a spokesperson stated.

According to the statement, the KRG had already agreed with the federal government in April 2023 to resume oil exports; however, despite this agreement, exports have not resumed. The situation was further complicated by unfair provisions of the budget law.

"The KRG's oil industry was established through foreign investment without using funds from the country's budget. However, the budget law treats it similarly to the Iraqi oil industry, which operates on billions of dollars. The allocated oil amount to the Kurdistan Region does not correspond to the actual production and transportation costs," it added.

“The Kurdistan Region's oil accounted for only 10 percent of Iraq's oil exports, and the revenue from this oil was only a part of the financial entitlements of the Kurdistan Region's people in the country's general budget. There is a severe financial crisis, delaying salary payments to KRG employees. Previously, salaries were paid promptly using oil revenues," the statement explained.

"Prime Minister Masrour Barzani and Prime Minister Mohammed Shia al-Sudani have initiated efforts to resume oil exports to resolve the issue, addressing the obstacles and problems hindering the resumption of oil exports from the Kurdistan Region," the statement concluded.

The export of Kurdish oil has been halted since March 25 after Iraq claimed victory against Turkey at a Paris-based international court for allowing independent Kurdish oil exports.