Abadi not will­ing to pay Kur­dis­tan’s budget in full

The Kurdish Globe - - NEWS -

Iraqi Prime Min­is­ter Haider al Abadi is not will­ing to pay Kur­dis­tan this month’s budget equal to the amount of oil Er­bil has ex­ported.

Re­ports also in­di­cate that there are dif­fer­ences be­tween Prime Min­is­ter Abadi and the Iraqi Min­istry of Oil re­gard­ing this is­sue.

Ac­cord­ing to re­ports Kur­dis­tan Re­gion’s records show that they have de­liv­ered 16,300,000 bar­rels of oil to the Iraqi State Oil Mar­ket­ing Or­ga­ni­za­tion SOMO at the Cey­han Port in Turkey; how­ever SOMO claim that they have only re­ceived 15,300,000 bar­rels.

This is­sue has re­port­edly re­sulted in a dis­agree­ment be­tween Er­bil and Bagh­dad.

An­other is­sue is that the Iraqi gov­ern­ment re­port­edly doesn’t want to count the Kirkuk oil Kur­dis­tan Re­gion ex­ports in the cal­cu­la­tions of pay­ments to Er­bil, while ac­cord­ing to the De­cem­ber 2014 oil deal be­tween the cen­tral and re­gional gov­ern­ments Kur­dis­tan is obliged to ex- port 250k bpd of its own oil and 300b bpd of Kirkuk oil through its in­de­pen­dent pipe­lines.

These issues have cre­ated dis­agree­ments be­tween PM Abadi and the Oil Min­istry on the way of send­ing Kur­dis­tan’s budget.

KRG, on the other hands, ar­gues that based on the amount of ex­ports in April, Bagh­dad has to send US$850 mil­lion, which Bagh­dad doesn’t agree to com­ply with.

As SOMO’s re­ports state that they have re­ceived 15,300k bpd from Kur­dis­tan, Iraqi Oil Min­istry asked Abadi to ap­prove trans­fer of US$625 mil­lion to Er­bil, how­ever, Abadi has not agreed with this ei­ther and has only ap­proved US$543 mil­lion, which has been re­jected by the KRG.

Some sources also ar­gue that there is yet an­other point of dis­agree­ment be­tween Er­bil and Bagh­dad, which is the oil price es­ti­mate to be used for cal­cu­lat­ing Kur­dis­tan’s budget.

Kur­dis­tan Re­gion is re­port­edly ask­ing the es­ti­ma­tion to be based on US$ 56 per bar­rel, while cen­tral gov­ern­ment in­sists on es­ti­mat­ing on US$51 per bar­rel.

Dur­ing April av­er­age oil prices were US$58 per bar­rel and are cur­rently around US$65 per bar­rel.

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