Oil Minister Reveals Study of Important Budget Amendment to Resume Region’s Exports
The Minister of Oil, Hayan Abdul Ghani, revealed that the federal government is considering a proposed amendment to the country’s budget that allows it to pay the salaries of international oil companies operating in the Kurdistan region.
This budget adjustment could allow producers in the region to resume production, and eventually export through the Turkish port of Ceyhan.
Turkey shut down the pipeline transporting crude oil from Kurdistan in March 2023, losing billions of dollars in revenue to governments and related companies.
The main obstacle to the resumption of Kurdistan inflows is the high cost of oil production in the region, and the Prime Minister, Mohammed Shiaa of Sudan, last December, estimated this cost at $21 per barrel in Kurdistan, compared to only $8 in other areas of Iraq.
“We seek to quickly solve the problem of high cost, and resume exports as soon as possible,” Abdul Ghani said in response to Bloomberg’s inquiries, adding that the Ministry of Oil hopes to review and amend the contracts signed between the KRG and international companies.
Turkey shut down the pipeline after an international arbitration court in Paris ordered it to pay $1.5 billion in damages to Iraq for transporting oil through the pipeline without Baghdad’s approval.
Ankara, which claimed the pipeline was closed for maintenance only, said last October that the line was ready for operation, and it was up to Iraq to resume flows.
Turkish President Recep Tayyip Erdogan is scheduled to visit Baghdad next month, which could help address other thorny files, including the compensation ordered by the court.
Abdul Ghani concluded that Iraq is keen to resume exports through the Turkish port of Ceyhan, and maintain strong economic relations with Ankara.
https://alforatnews.iq/news/وزير-النفط-يكشف-عن-دراسة-تعديل-مهم-في-الموازنة-لاستئناف-صادرات-الإقليم
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