 Kevc67 that sounds like another big moment coming up. Full article:
hxxps://www.rudaw.net/sorani/business/200320254
The Kurdistan Region has given its views to Baghdad on the consulting company that determines the price of oil production and transportation, saying that it must work within the framework of the contracts of the companies, and submit a draft report before completing the work.
According to the minutes of their meeting, Baghdad and Erbil disagree on the amount of oil used for domestic purposes, previous debts, the nature of the consulting company, so these issues will be reported and submitted to the prime minister for decision.
A delegation from the Kurdistan Regional Government (KRG) is scheduled to meet with officials of the Federal Oil Ministry on Thursday, March 20, 2025 to discuss the obstacles to oil exports and the financial entitlements of companies.
The delegation includes Kamal Mohammed Salih, acting minister of natural resources, and Bayan Sami Abdulrahman, advisor to the prime minister.
The delegation's meetings are a prelude to resolving the dispute between Erbil and Baghdad over the oil issue, which is expected to be decided by Sudanese Prime Minister Mohammed Shia, according to Rudaw.
The Iraqi parliament on February 2, 2025, approved the first amendment to the three-year budget law as the first step to resume oil exports from the Kurdistan Region, which has been suspended since the end of March
"The most important issues that will be put before Sudan to resolve are the debts of oil companies from 2022 until the suspension of oil exports, and the nature of the consulting company, whether it is oil or auditing," a source familiar with the matter told Rudaw.
What do Erbil and Baghdad demand from each other?
On March 12, 2025, the two technical delegations of the Kurdistan Regional Government (KRG) and the federal government met to discuss their demands on the issue of oil exports and how to deal with the expenses of companies.
According to the minutes of the meeting, the Kurdistan Regional Government (KRG) representative said that they need 115,000 barrels of oil for domestic consumption, which is 14% of the oil products used in the Iraqi provinces. The issue has been resolved by the Iraqi prime minister, who has requested the same amount of $ 16 per barrel of exported oil for domestic consumption.
The budget amendment deals with the production, transportation and delivery of oil in the Kurdistan Region, which sets $16 as the cost of production and transportation of oil per barrel, until an international consulting body determines an estimated price within 60 days.
The Kurdistan Regional Government (KRG) delegation told the Baghdad delegation that some of the oil products are used in the Kurdistan Region and some of them will be sent to the Ministry of Electricity free of charge.
Representatives of the Oil Ministry said that the amount of oil used for the Kurdistan Region, which they consider worthy of 46,000 barrels, and representatives of Baghdad, the Kurdistan Region must pay $ 120 million of oil revenues to Baghdad, which is a debt to the Kurdistan Region.
The minutes were to be submitted to Sudanese Prime Minister Mohammed Shia for a decision to resolve the differences.
What should the consulting firm do?
The Kurdistan Regional Government (KRG) has sent an official letter to the Council of Ministers on March 16, 2025, expressing its views on the nature of the consulting company to be appointed to determine the price of oil production and transportation.
The KRG believes that the consulting company should audit and compare the lists submitted by oil companies to determine the financial entitlements, according to the contracts signed with the KRG.
The letter states that the consulting firm must be responsible for comparing the amount of oil and its money in the world markets based on official documents, as well as monitoring and comparing oil sales agreements between the government and companies in terms of price.
The KRG believed that the company should follow up on the shares of the companies under its production-sharing contracts. The company's work and procedures should be consistent with the obligations and rights signed between the oil companies and the KRG.
Another view of the KRG was that the cost of transporting oil companies, pipelines or tankers should be covered according to the contracts signed with them.
The KRG believes that the consulting company should prepare a report on the cost of production and transportation of oil within two months. After the company's work in those two months, the federal government should build confidence in the calculation signed between them.
According to the amendment to the budget law, the Kurdistan Region must deliver 400,000 barrels of oil per day to SOMO.
The KRG has proposed a timetable for the consulting company to complete its work within 90 days, submit a weekly report on its work and submit a draft report to the relevant parties a week before the completion of the work. |
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