The region decides to hand over oil to SOMO, and Parliament welcomes the move.

The region decides to hand over oil to SOMO, and Parliament welcomes the move.

2025/07/31

The Parliamentary Oil and Gas Committee welcomed the Kurdistan Region’s move to agree to hand over oil to the federal government, stressing that this step represents a positive development toward regulating the management of oil wealth within constitutional frameworks.

The Kurdistan Regional Government announced on Wednesday that the current export-ready oil produced by foreign companies will soon be delivered to the State Oil Marketing Organization (SOMO) for export via the port of Ceyhan. The government also affirmed its commitment to the joint understanding between the two sides.

Amid this, the Parliamentary Electricity and Energy Committee called for diversifying gas sources through offshore platforms and utilizing gas associated with oil production.

The regional government said in a press release: “Prime Minister of the Kurdistan Region, Masrour Barzani, chaired a meeting of the region’s Council of Ministers, attended by Deputy Prime Minister Qubad Talabani.”

The statement added that “the meeting discussed the final steps for disbursing salaries for June and July 2025, in light of the joint decision of the two Councils of Ministers, and followed up on the work of the joint committees.” It noted that “the Council of Ministers decided that the Kurdistan Regional Government would be responsible for compensating the oil producing company for the amount of oil allocated for local use in the region, in accordance with the joint decision with the Federal Council of Ministers.”

He continued, “The quantity of oil currently ready for export, produced by foreign companies, will be delivered to the State Oil Marketing Organization (SOMO), for export via the port of Ceyhan,” stressing “the Kurdistan Regional Government’s commitment to the mutual understanding between the two sides.”

The statement explained that “the federal government must pay salaries for the months of June and July, as is the case in the rest of Iraq, because the Kurdistan Region is committed to implementing the agreed-upon oil and non-oil revenues, and the Kurdistan Regional Government supports the success of the joint understanding between the two sides, which was previously approved by the Council of Ministers of both sides.”

Immediately following the region’s decision, MP Nazim Al-Shabli, a member of the parliamentary Oil and Gas Committee, told Al-Sabah: “The issue of exporting oil outside the official framework was causing significant harm to the national economy and negatively impacting public revenues and the fair distribution of wealth.” He pointed out that “delivering the region’s oil to Baghdad is a constructive response, and we hope that it will be completed by activating technical and legal agreements through the National Oil Marketing Company (SOMO).”

He explained that “the federal government, through the Ministry of Oil and SOMO, has expressed its full technical and legal readiness to receive the oil produced in the region and market it according to standards of transparency and justice,” adding that “the parliamentary committee supports these paths and is keen to implement the decisions of the Federal Court in a way that guarantees market unity and the rights of all.”

Al-Shibli pointed out that “this step represents a real opportunity to end the multiplicity of contracts and entities, and to enter a new phase of joint coordination between Baghdad and Erbil,” calling for “the completion of executive procedures and adherence to agreements to ensure the stability of the oil market and the transparency of the management of its resources.” On the other hand, Kamel Al-Akili, a member of the Parliamentary Electricity and Energy Committee, told Al-Sabah: “The Ministry of Electricity is currently working to increase energy production by establishing new stations, which were contracted during the government of Prime Minister Mohammed Shia Al-Sudani.” He pointed out that “previous contracts did not benefit from the gas associated with oil extraction. Had that been done, Iraq would have a large number of gas stations today.”

He explained that “the actual need for electricity in Iraq amounts to approximately 55,000 megawatts, which requires diversifying generation sources, particularly through the establishment of offshore platforms to receive gas from other countries, to ensure security of supply and achieve production stability in the coming years.”

Regarding solar energy, Al-Akeili explained, “There are contracts that have not been implemented and others that are being implemented in this field, but solar energy remains a temporary solution because it does not provide continuous energy throughout the day, especially in governorates with great need.”

Al-Akeili called on citizens to “take advantage of the Central Bank’s initiative to support home solar energy projects,” stressing that “installing these systems in homes reduces pressure on the national grid and offers a practical solution under the current circumstances.”

In a related development, Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani directed on Wednesday that the plan to equip power plants with various fuels be adhered to to ensure the plants’ continued operation.

The ministry said in a press release: “Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul-Ghani Al-Sawad, chaired the seventh session of the Opinion Board, which was held at the Ministry of Oil, in the presence of undersecretaries, advisors, and general managers of companies and departments within the Ministry of Oil.”

During the session, Abdul Ghani affirmed, according to the statement, that “the ministry excels every year in this regard, by providing services related to the fuel plan.”

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