Kurdistan exports to hit 625K barrels by August
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.