The Iraqi parliament is reviewing amendments to the budget bill increasing the amount that international oil companies (IOCs) in the Kurdistan Region make from producing oil which could pave the way for the resumption of Kurdish oil exports through Turkey’s Ceyhan port.
In a meeting with the heads of parliamentary blocs in Baghdad, Sudani “emphasized the necessity for the parliament to approve this amendment without modifications to ensure the completion of development plans,” a statement from his office said.
The parliamentary bloc leaders, as well as the parliament speaker and his two deputies, echoed Sudani’s remarks and “expressed their support for adopting the government’s proposed amendment to the Federal Budget Law,” the statement added.
In November, the Iraqi government approved a proposal to amend articles from the federal budget to authorize compensation to IOCs in the Kurdistan Region for oil production and transportation costs, setting the rate at $16 per barrel. The proposal has had its first and second reading in the Iraqi legislature but has not been passed yet.
The move was welcomed by the Kurdistan Regional Government (KRG) and the IOCs.
On Monday, Iraqi Foreign Minister Fuad Hussein said that Baghdad and Erbil, along with the IOCs, have reached a written agreement that was approved by the Council of Ministers and is awaiting parliamentary approval.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin independent oil exports in 2014.
Erbil and Baghdad have held several meetings to discuss amendments to Iraq’s previously approved 2025 budget law and address obstacles to paying the Kurdistan Region’s civil servant salaries.
The KRG has struggled to pay the salaries of its civil servants on time and in full for a decade due to a financial crisis that further deteriorated after the oil export halt. Erbil is reliant on its local income and federal budget funds.
