Iraqi Oil Minister Highlights $16 Per Barrel Budget for Kurdistan Region's Oil Production

Iraqi Oil Ministry's media office

Iraqi Minister, Hayyan Abdul Ghani.

The Iraqi Oil Minister, Hayyan Abdul Ghani, has revealed that the budget allocates $16 per barrel for oil production in the Kurdistan Region. However, he emphasised that his ministry does not oversee oil production in the Kurdistan Region.

Speaking to the Iraqi News Agency, Abdul Ghani stated, "The expected export rate via the Ceyhan port is 350,000 barrels per day" and clarified that the Federal Oil Ministry has no control over oil production in the Region.

He further outlined that the Region is currently producing 286,000 barrels per day, with ongoing efforts to ensure long-term investment in oil and gas. Abdul Ghani confirmed that SOMO, Iraq's state oil marketing organisation, sells oil only to companies that own refineries, and that tankers transporting oil are monitored via satellite.

The Minister emphasised the transparency of Iraqi oil exports, noting that the Ministry of Oil publishes monthly reports detailing oil quantities and financial revenues. He also addressed the issue of forged Iraqi documents used by commercial Iranian oil tankers to bypass sanctions, confirming that the Iraqi government had informed U.S. authorities about these fraudulent documents and had no involvement with them.

Abdul Ghani also provided an update on Iraq's oil contracts, revealing that the Ministry of Oil has signed 44 contracts from new licensing rounds, with Basra accounting for the majority. The country's oil exports range between 3.2 million and 3.5 million barrels per day, with 70% of Iraqi oil going to Asian markets, primarily China and India.

In regard to the ongoing OPEC policies, Abdul Ghani highlighted that eight major OPEC countries are participating in voluntary oil production cuts. He reassured that Iraq’s participation in these agreements is aimed at stabilising the global market. The Minister also reiterated that Iraq's oil contracts are determined by technical, not political, considerations, with no intention to exclude Western companies. He invited companies from all nations, including the U.S., to participate in Iraq's oil sector, noting that American companies had shown minimal interest in recent licensing rounds.



PUKMEDIA