Kur­dis­tan ex­ports to hit 625K bar­rels by Au­gust

The Kurdish Globe - - NEWS -

Iraq’s oil ex­ports reached 92 mil­lion bar­rels last month, break­ing its life­time record. Ac­cord­ing to the Iraqi Oil Min­is­ter Adil Ab­dul Mahdi, the Er­bil Bagh­dad oil deal was the ma­jor fac­tor be­hind the achieve­ment.

A mem­ber of the Oil and Gas Com­mit­tee at the Iraqi Coun­cil of Rep­re­sen­ta­tives claims that Kur­dis­tan Re­gional Gov­ern­ment (KRG) has been com­ply­ing with the terms of its agree­ment with Bagh­dad in ex­port­ing oil, and it will ex­port more than the re­quired amount of 550k bpd this month.

He also says that by Au­gust this year, the ex­ports from Kur­dis­tan Re­gion will reach 825,000 bpd, and hence Bagh­dad will send the agreed 17% share of the coun­try’s bud­get to the Re­gion from now on.

Hakim Sarhan Mo­hammed, mem­ber of the Fi­nance Com­mit­tee of the Coun­cil of Rep­re­sen­ta­tives said that the cen­tral gov­ern­ment shall send April’s budged share to Er­bil next week at the lat­est.

Ac­cord­ing to MP Mo- hammed, the amount of the funds will be above IQD 650 bil­lion, ap­prox­i­mately US$550 mil­lion.

How­ever, this is slightly above 50% of Kur­dis­tan’s fair share of the bud­get, which ac­cord­ing to the coun­try’s 2015 bud­get law is IQD 1.2 tril­lion, i.e. US$1 bil­lion.

If Bagh­dad is to com­ply with the agree­ment the same way Er­bil is, for May, when Kurds ex­port more than 550,000 bpd oil, Bagh­dad has to send the funds in full.

Ac­cord­ing to Mo­hammed, then the fi­nan­cial cri­sis in Kur­dis­tan and the salary pay­ment is­sues will be solved.

Kawa Mo­hammed, mem­ber of the Iraqi Par­lia­ment’s Oil and Gas Com­mit­tee ar­gued that Kur­dis­tan is cur­rently ex­port­ing above 520,000 bpd through the Iraqi State Oil Mar­ket­ing com­pany SOMO.

“For this month the ex­ports will be well above 550k bpd, which is ex­pected to be in­creased fur­ther to reach 625k bpd in Au­gust,” said MP Mo- hammed in an in­ter­view with a lo­cal Kur­dish daily news­pa­per. “KRG is bound by the Er­bil-Bagh­dad oil deal, and hence Bagh­dad has to be bound by it the same way and send IQD1.2 tril­lion and Pesh­marga’s bud­get in full as of this month.”

Na­jiba Na­jib, a Kur­dish mem­ber of the Econ­omy and In­vest­ment at the Iraqi Par­lia­ment, says that Kur­dis­tan’s bud­get shall be paid and Bagh­dad is obliged to pay the 17% share to Er­bil.

“Kur­dis­tan Re­gional Gov­ern­ment is show­ing its com­mit­ment to its words day af­ter day and hence in­creases its ex­ports con­tin­u­ously,” said MP Na­jib. “This month more money shall be sent to Er­bil, but it is not yet clear ex­actly how much; whether the full IQD1.2 tril­lion or an amount sim­i­lar to pre­vi­ous month. This will be clear next week [this week].”

Iraq’s 2015 bud­get is IQD119 tril­lion, ap­prox­i­mately US$100 bil­lion, out of which Kur­dis­tan’s share is IQD16 tril­lion.

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