Al-Sudani solves the puzzle: An article in the budget prevents the export of oil through Turkey, and we support its amendment
Al-Sudani solves the puzzle: An article in the budget prevents the export of oil through Turkey, and we support its amendment
12-15-2023
Prime Minister Muhammad Shiaa Al-Sudani explained the reason for the continued cessation of oil exports from the Kurdistan region, despite the three parties (Baghdad, Erbil, and Ankara) declaring their readiness to resume pumping.
Al-Sudani said in an interactive dialogue with journalist Othman Biston for the Rudaw channel that an article in the budget is what hinders the resumption of oil exports, indicating that the government supports amending that article, and that the continued cessation of oil pumping will inflict great losses on Iraq.
Everyone is ready (Baghdad, Erbil, and Turkey), but the House of Representatives established an article stating that the cost of producing a barrel must be according to the national average. This is a paragraph that the government did not establish.
After Turkey announced its readiness to resume exports, we came to the oil companies, but they said they could not resume exports because the average production per barrel in Kurdistan is 21 dollars, not 8 as the national average stipulated in the budget.
Who pays this difference? This is one of the problems in the budget law, and now we are waiting for this paragraph to be amended, so that we can pay the cost.
The Council of Ministers certainly agrees to amend this paragraph because we are losing up to 470 thousand barrels per day, which we were supposed to export from the region and outside it. Therefore, we sent the Minister of Oil to Kurdistan and he held a session with the Minister of Natural Resources there, and he met with a group of oil companies, and we agreed on the article required to be amended and included it in The draft that we are discussing with Parliament.
The region now produces 80 to 90 thousand barrels per day, which go to refineries to produce oil derivatives.
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