Federal Council of Ministers to Address Kurdistan Salaries Amid Oil Export Deal

Economy 11:05 AM - 2025-09-23

Iraqi Council of Ministers' meeting.

The Federal Council of Ministers is due to convene its regular session today, Tuesday, with a number of issues on the agenda, foremost among them the issue of salaries for public employees in the Kurdistan Region, following the agreement recently struck on oil exports.

Tripartite Agreement

After months of disputes, Baghdad and Erbil have reached a landmark arrangement with international companies to resolve the long-running suspension of oil exports through Türkiye’s Ceyhan port. Under the terms, foreign companies will receive payments in the form of service fees rather than a direct cash share of oil revenues.

The agreement is expected to restore flows gradually, beginning with about 100,000 barrels per day and rising to 300,000 barrels per day once technical and logistical arrangements are finalised with Ankara. The Kurdistan Region has committed to producing 230,000 barrels daily, of which 50,000 will be retained for domestic consumption, while the remainder will be handed over to the State Oil Marketing Organisation (SOMO) for export.

Employee Salaries

Dr Narmin Marouf, a member of the Parliamentary Finance Committee, told PUKMEDIA that the salaries of Kurdistan Region employees for the remainder of the year are tied to the joint Baghdad–Erbil agreement on both oil and non-oil revenues. She noted that if the Council of Ministers receives the necessary reports on these revenues, it is expected to approve salary disbursements during Tuesday’s session.

She confirmed that the oil deal stipulates 50,000 barrels per day for regional use, with production costs of $16 per barrel to be paid directly to operating companies. This was finalised during talks between the federal Oil Ministry, the Kurdistan Ministry of Natural Resources, and the companies.

Importance of the Agreement

Former MP Shirwan Mirza described the arrangement as “significant”, saying it resolves the issue of company dues by providing oil in place of cash. He added that, alongside non-oil revenues, the deal should help ease wider disputes between Baghdad and Erbil.

Federal Government’s Conditions

Parliamentary Finance Committee member Jamal Kochar outlined three federal demands for the release of Kurdistan Region salaries: resumption of oil exports, transfer of non-oil revenues, and Nationalisation (Tawtin) of payrolls. He said that most points had already been agreed on and stressed that once exports restart and revenues are transferred, salaries for the remainder of the year are likely to be released to Kurdistan Region employees.



PUKMEDIA