BAGHDAD, Iraq — Progress looms in the prolonged stalemate over the Kurdistan Region’s oil exports as the Iraqi Parliament completed the first reading of a proposed amendment to the Federal Budget Law for 2023-2025. The amendment aims to resume stalled oil operations halted since March 2023 by addressing production costs and establishing payment mechanisms.
Parliament’s proposal includes appointing an international advisory firm to evaluate oil production and transportation costs in the Kurdistan Region. This follows a November 5 decision by the Iraqi government to increase allocations for oil production and transportation from $6.90 to $16 per barrel.
The move has garnered support from APIKUR, representing international oil companies operating in the Kurdistan Region, which praised the amendment for addressing critical commercial terms and payment guarantees.
Kurdistan Regional Government (KRG) spokesperson Peshawa Hawramani called it a positive but interim measure.
“This decision is a step toward normalizing the situation, but it is temporary,” he said.
“We expect international oil companies operating in the Kurdistan Region’s oil fields to begin talks within the next 60 days to resolve the oil export impasse.”
Resumption of exports via the Iraq-Turkey Pipeline (ITP) remains vital, as the suspension followed a Paris arbitration ruling that found Turkey violated a 1973 treaty by allowing exports without Baghdad’s consent. This suspension has inflicted billions in revenue losses for the Kurdistan Region.
Despite the progress made with the first reading of the amendment, the next phases—namely the second reading and the voting on the bill—are expected to face challenges. Political agreements between Sunni, Shiite, and Kurdish factions within the Iraqi House of Representatives will be crucial for the bill’s passage.
