Bloomberg: Baghdad wants to amend the budget to resume exporting Kurdistan oil
Bloomberg: Baghdad wants to amend the budget to resume exporting Kurdistan oil
2024-03-22 01:35
Shafaq News/ Bloomberg reported on Friday that the Iraqi government is still studying a proposed amendment to the federal budget that would enable Baghdad to pay the salaries of international oil companies operating in the Kurdistan Region.
According to news from the agency, translated by Shafaq News Agency, the change will allow producers in the Kurdistan Region to resume production, and eventually exports through the Turkish port of Ceyhan, as the closure of the Turkish pipeline caused the loss of billions of dollars in revenue for the governments and companies concerned.
According to the American agency, one of the main obstacles to restarting flows is the cost of producing Kurdish oil, as Prime Minister Muhammad Shia al-Sudani set this cost last December, which is $21 per barrel, compared to only $8 in other regions of Iraq. .
Abdul Ghani said in response to Bloomberg’s questions: “We seek to accelerate the settlement of the cost issue and resume exports as soon as possible,” adding that “the Ministry of Oil hopes to review and amend the contracts signed between the Kurdistan Regional Government and international companies.”
Turkey closed the pipeline after an arbitration court ordered it to pay $1.5 billion to Iraq in compensation for transporting oil through Ceyhan without Baghdad’s approval. Ankara, which claimed the pipeline was closed only for repairs, said in October that it was ready for operations and it was up to Iraq to resume flows.
Turkish President Recep Tayyip Erdogan is scheduled to visit Baghdad next month, which could help resolve other sticking points, including the fine.
Bloomberg quoted Abdul Ghani as saying, “Iraq is keen to resume exports through Ceyhan and maintain strong economic relations with Turkey.”
shafaq.com
