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Iraq’s Parliament to Discuss New Bill on Oil Exports
The federal Parliament of Iraq is set to discuss next week the new bill on oil exports, a Kurdish MP told Kurdistan24, adding he was optimistic an agreement with all parties, including the Shiite ones, can be reached.
The federal government of Iraq and the semi-autonomous region of Kurdistan have been at odds about Kurdistan’s oil exports and revenues for a decade now. Kurdistan’s oil production of about 450,000 barrels per day (bpd) has been shut-in for a year and a half now, after a legal decision in March 2023 and a row on who and how gets the revenues.
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The sticking point in the new export law has been a section in Iraq’s budget law, that equates production and transportation costs with those of the federal oil ministry, Sabah Subhi, a member of the Iraqi Parliament’s Oil and Gas Committee, told Kurdistan24.
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“Production costs in Kurdistan’s oil sector have been managed differently since 2007, based on production sharing agreements between the government and companies,” the Kurdish MP told the news outlet.
“However, since 2014, there have been attempts to halt Kurdistan Region’s oil exports,” Subhi was quoted as saying.
Earlier this week, Iraqi media reported that the federal Iraqi government had decided to start delivering crude oil from Kurdistan to the state-owned oil company or the oil ministry. The price that Baghdad is going to pay to the regional government of Kurdistan is yet to be determined.
The impasse regarding Kurdistan’s oil exports followed an International Chamber of Commerce ruling in March 2023 in a dispute between Turkey and Iraq regarding Kurdistan’s oil. The ICC ruled in favor of Iraq, which had argued that Turkey should not allow Kurdish oil exports via the Iraq-Turkey pipeline and the Turkish port of Ceyhan without approval from the federal government of Iraq.
The ruling had an impact on international oil companies operating in Kurdistan, which suspended operations until they had clarity on any changes in their terms of operation in the region. There was also a dispute between the government in Baghdad and the one in Erbil over these oil deliveries and who gets to keep the money from their sales on international markets.
By Charles Kennedy for Oilprice.com
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Source: https://oilprice.com/
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