Kur­dis­tan re­ceived a $455 mil­lion bud­get pay­ment from Bagh­dad for March

The Kurdish Globe - - FRONT PAGE -

Kur­dis­tan re­ceived a $455 mil­lion bud­get pay­ment from Bagh­dad for March, a proof that the Cen­tral Gov­ern­ment honours the deal over the Kurds’ oil poli­cies, the coun­try’s Fi­nance Min­is­ter said on Thurs­day.

Bagh­dad cut the bud­get pay­ments in Jan­uary 2014 over the semi-au­ton­o­mous Kur­dis­tan re­gion’s plans to ex­port its oil through Tur- key but re­in­stated them in De­cem­ber af­ter the Kurds agreed to ex­port an av­er­age of 550,000 bar­rels per day through Turk­ish Cey­han port via Iraq’s State Oil Mar­ket­ing Or­gan­i­sa­tion (SOMO) in 2015.

The agree­ment aimed to help Iraq in­crease oil ex- ports at a time when rev­enues are strained by low global prices and the cost of fight­ing the Is­lamic State ter­ror­ists who seized con­trol of large ar­eas in the north and west of Iraq.

“Both sides are com­mit­ted to im­ple­ment­ing the agree­ment in good faith,” Fi­nance Min­is­ter Hosh­yar Ze­bari told Reuters.

Ze­bari, a Kurd, added that the pay­ments had come in for the past five months. Iraq made its last pay­ment to the Kurds for Fe­bru­ary on March 19.

The semi-au­ton­o­mous Kur­dish Re­gion was promised 17 per­cent from this year’s $105 bil­lion na­tional bud­get, which av­er­ages out to a monthly pay­ment of $1 bil­lion.

So far, nei­ther side has been able to reach its im­me­di­ate tar­gets. The Cen­tral Gov­ern­ment has suf­fered cash flow prob­lems, bur­dened by low oil prices and the war against the Is­lamic State.

The Kurds have strug­gled to reach the ex­port tar­get of 550,000 bar­rels per day from their fields and from na­tional fields in Kirkuk they are now re­spon­si­ble for ex­port­ing from.

To­tal Kur­dish oil ex­ports have now reached an av­er­age of 450,000 bar­rels per day, ac­cord­ing to Ze­bari.

Both sides have dis­played “a steady, in­sis­tent com­mit-

Newspapers in English

Newspapers from Iraq

© PressReader. All rights reserved.