Oil Expert: Agreement with Federal Government Best for Kurdistan Region

PUKMEDIA

KRG and Iraqi government's logo.

Discussions continue between the Kurdistan Regional Government (KRG) and the Iraqi federal government to finalise an agreement on resuming oil exports from the Kurdistan Region and addressing the issue of delayed salaries, which have been outstanding for over two months. 

A KRG delegation is currently in Baghdad, holding ongoing meetings with federal officials to reach a joint understanding on restarting oil exports. 

Rebwar Mohammed Amin, an expert in oil contracts, told PUKMEDIA that dialogues are progressing and expressed hope for a comprehensive agreement that resolves outstanding matters.

He added that the KRG has proposed exporting 300,000 barrels of oil per day. Meanwhile, the federal government insists that all extracted oil be handed over to the State Oil Marketing Organisation (SOMO), while the Kurdistan Region seeks to retain a portion for domestic consumption. 

Amin suggested that the most effective solution would be for the KRG to transfer all extracted oil to the federal government and, in return, receive its full budget share and employee salaries, alongside subsidised fuel and oil supplies for citizens, in line with other Iraqi provinces.

"Another complicating factor is the presence of oil companies contracted directly with the KRG, which must be paid their dues without alterations to contract clauses. Additionally, the KRG faces outstanding loan obligations, further complicating negotiations," he said.

Amin emphasised the importance of adhering to the Iraqi constitution and reaching a comprehensive agreement consistent with constitutional and legal frameworks to resolve these issues definitively and ensure payment of delayed salaries.



PUKMEDIA