The Kurdish Globe unveils key details on Kurdistan’s oil export plans
The Ministry of Natural Resources has announced that restarting oil exports is crucial for the economies of both Iraq and the Kurdistan Region, as it will help resolve a significant portion of the budget deficit.
According to a statement from the Ministry of Natural Resources, Kamal Muhammad Salih, the Minister of Natural Resources, highlighted the importance of the arrival of several major French companies, particularly oil companies, to Kurdistan. The French Consulate General in Kurdistan has expressed hope for the necessary coordination and cooperation to facilitate investment by these major French companies in the Kurdistan Region.
Regarding the resumption of Kurdistan’s oil exports, the Minister of Natural Resources stated, “In the new year, there are strong indications that Kurdistan’s oil exports will resume through SOMO. The process is currently in the stage of amending a paragraph of the budget law. Restarting oil exports is essential for the economies of both Iraq and the Kurdistan Region, and it will resolve a significant part of the budget deficit.”
Simultaneously, the Iraqi Parliament’s Finance Committee held another meeting to amend Article 12 of the Federal Budget Law, which concerns production and transportation fees for oil exports from the Kurdistan Region.
Dr. Narmin Ma’ruf, a member of the Iraqi Parliament’s Finance Committee, announced that during their ongoing meetings, discussions were held regarding the committee’s report on amending Article 12 of the Federal Budget Law concerning production and transportation fees for the Kurdistan Region’s oil. She emphasized that the meetings aim to finalize the report, which will then be presented to the Iraqi Parliament.
On December 1, 2024, the Iraqi Parliament’s Finance Committee hosted the Deputy Secretary of the Oil Ministry for Extraction Affairs, the Director General of the Oil Marketing Company (SOMO), and the Directors of the Economic and Legal Departments of the Ministry.
The meeting focused on the importance of amending the specific section related to oil exports from the Kurdistan Region.
Yesterday, Sivan Sindi, a member of the Kurdistan Democratic Party (KDP) in the Iraqi Council of Representatives, told Kurdish Globe: “Muhammad Shia’ Sudani, the Prime Minister of Iraq, spent three hours in the Iraqi Parliament addressing various issues. His aim was to provide explanations to the factions regarding the budget law amendment, specifically concerning Kurdistan’s oil exports.”
He added, “Sudani explained the importance of cooperation in passing this amendment. The plan is to have a second reading of the amendment concerning Kurdistan’s oil, followed by a third reading. Sudani’s intent was to assure the factions that the amendment should pass easily, emphasizing that when Kurdistan’s oil is halted, Iraq also suffers.”
He further stated, “If this amendment is passed, the issues regarding Kurdistan’s salaries and budget will be resolved, as oil will be exported, and in return, Kurdistan’s budget share will be allocated.”
He added, “We are waiting for the second reading of the 2025 budget law amendment, which includes a specific clause on the cost of exporting Kurdistan’s oil. After voting on it and its implementation, oil exports from Kurdistan will resume. The process is challenging, but it is achievable and will pass.”
According to an Erbil-Baghdad agreement on the budget law amendment, the extraction and transportation costs from oil fields in the Kurdistan Region will increase to nearly 16 dollars. However, an impartial international consultancy company will conduct a detailed review to determine the actual costs of oil extraction and export. This review is expected to take 60 days.
Since March 25, 2023, oil exports from the Kurdistan Region have been suspended.