SULAIMANI, Kurdistan Region — The Kurdistan Region exports 400,000 barrels of oil through tankers every day. Out of this total, international oil companies earn revenues from 250,000 barrels, while the Kurdistan Regional Government (KRG) retains 150,000 barrels, alleges lawmaker in the Iraqi Parliament Soran Omar.
In a statement on his Facebook wall, Omar claims that not “a single Iraqi dinar” returns to the KRG Ministry of Finance.
“They sell 400,000 barrels of crude oil every day, priced at $30 per barrel. Of this total, 250,000 barrels are allocated to foreign companies, while the remaining 150,000 barrels are for the Kurdistan Regional Government, with not a single dinar going back to the Ministry of Finance.”
Oil exports through the Iraq-Turkey pipeline have been halted for nearly 15 months due to a ruling from an international arbitration court. Subsequent negotiations among Iraq, the KRG, and Turkey have been unproductive since then.
Since then, the number of oil tankers on the main roads between Erbil and Sulaimani has increased significantly. This surge has led traffic police authorities in Sulaimani province to prohibit trucks and tankers from entering the city during daylight hours.
A convoy of oil tankers traveling along the Sulaimani-Dukan main road. Credit: Soran Omar, member of the Iraqi parliament.
“Besides the looting of oil, the presence of convoys of oil tankers on streets and roads remains a significant hazard to the safety of drivers and passengers,” adds Omar. He adds that he will investigate the case of “selling oil and taking its revenues” after the Eid al-Adha holidays.
A convoy of oil tankers traveling along the Sulaimani-Dukan main road. Credit: Soran Omar, member of the Iraqi parliament.
The problem of resuming oil exports via the official pipeline connecting Iraq and Turkey stems from the difference in oil production costs. Iraq has set in the budget law a lower price per barrel, whereas the KRG has already entered into agreements with oil companies at higher prices, in contrast to the costs associated with the southern Iraqi oil fields.
Delegation from KRG and oil firms arrive in Baghdad to discuss restart of oil exports
