ERBIL — Dr. Sabah Subhi, an Iraqi parliamentary oil and gas committee member, shed light on the latest development between Erbil and Baghdad, which could ensure the Kurdistan Region’s full budget allocation from Baghdad. 

According to Kurdistan Regional Government (KRG) spokesperson Peshawa Hawramani, Prime Minister Masrour Barzani has maintained regular communication with Iraqi Prime Minister Mohammed Shia' al-Sudani to ensure the prompt resumption of Kurdistan’s oil exports.

Hawramani emphasized that oil companies are essential stakeholders in the export process due to existing contracts with the KRG. The spokesperson noted the importance of resolving Kurdistan’s oil agreement with Baghdad to stabilize ongoing discussions.

Subhi stated that Article 12 of Iraq’s 2024-2023 budget law aims for unified oil exports across Iraq, including Kurdistan, while proposing a $16 export fee per barrel for Kurdistan’s oil to facilitate exports through Iraq’s SOMO oil company.

If this article is implemented, Subhi clarified, a neutral international organization would oversee compliance, and Kurdistan’s oil revenue would be managed according to SOMO’s regulations. The law is set for parliamentary review next week and requires approval from the Finance and Energy Committees.

“The new arrangement would enable Kurdistan to receive its full budget from Baghdad, including additional revenues from oil, customs, and federal allocations,” said Subhi.