Bloomberg: Baghdad intends to amend the budget law to resume the export of Kurdistan Region oil

[size=52]Bloomberg: Baghdad intends to amend the budget law to resume the export of Kurdistan Region oil[/size]

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03/22/2024
The American Bloomberg Agency reported, on Friday, that the federal government is studying a proposed amendment to the federal budget, to resume the export of Kurdistan Region oil.[/size]
[size=45]According to the agency, the change will allow producers in the Kurdistan Region to resume production, as the suspension of exports caused Iraq to lose billions of dollars in revenue.[/size]
[size=45]According to Bloomberg, one of the main obstacles to restarting flows is the cost of producing Kurdistan Region oil, as Federal Prime Minister Muhammad Shia al-Sudani set this cost last December, which is $21 per barrel.[/size]
[size=45]Federal Oil Minister Hayan Abdul-Ghani said in response to Bloomberg’s questions, “We are discussing the issue of amending the federal budget law, so that Baghdad will be able, through the new budget law, to provide funds to oil companies operating in the oil sector in the Kurdistan Region.”[/size]
[size=45]Abdul Ghani pointed out that “if the federal general budget law is amended, the Kurdistan Region will be able to resume oil exports.”[/size]
[size=45]As of March 25, 2023, crude oil exports from the fields of Kurdistan and Kirkuk Governorate to Turkey through the Turkish port of Ceyhan were halted.[/size]
[size=45]In addition to suspending all oil activities of foreign companies operating in Kurdistan’s fields, after the International Arbitration Tribunal in Paris ruled that these exports were illegal.[/size]
[size=45]This decision comes as a result of a lawsuit filed by the federal government against Turkey at the International Court of Arbitration in Paris in 2014, due to it allowing Kurdistan’s oil to flow into its territory and export it without Baghdad’s approval.[/size]
[size=45]According to an agreement concluded between Baghdad and Ankara in 2010, the Iraqi Oil Marketing Company (SOMO) is the only entity authorized to export, market and sell Iraqi oil in global markets.[/size]
[size=45]Kurdistan was exporting 450,000 barrels daily to Turkey, to secure the salaries of its employees and its financial revenues, due to the absence of an oil and gas law regulating the management of oil wealth in Iraq.[/size]
[size=45]During his visit to the United States of America, the issue of resuming the export of oil from the Kurdistan Region was one of the main topics of discussions held by Prime Minister Masrour Barzani with officials in Washington.[/size]
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