ERBIL, Kurdistan Region of Iraq - Iraqi lawmakers on Sunday passed budget amendments, paving the way for the resumption of the Kurdistan Region’s oil exports to the international market, after nearly two years of halting, the Iraqi parliament announced.
The passing of the proposed amendments to the federal budget law during Sunday’s session came after completing the first reading of the bill in November.
The passing of the bill now paves the way for the resumption of the Kurdistan Region’s oil exports.
“Thanks be to God, the budget amendments were passed. Thus, there is no excuse in the way of resuming the exportation of the Region’s oil,” Shakhawan Abdullah, deputy speaker of the Iraqi Parliament wrote in a post on Facebook.
The bill-turned-law calls for amending section 2C of Article 12 of the Iraqi federal budget, which states that Baghdad will reimburse Erbil for the production and transportation cost of one barrel of oil at the average cost of production and transportation of the federal oil ministry – which is valued at $6.
The international oil companies (IOCs) have repeatedly stated that the value set out in the budget is way lower than their expenses. The amendments would set the cost of production and transportation of a barrel of oil at $16.
The Kurdistan Region’s oil exports have been halted since March 2023, dealing a major blow to Iraq and the Region's economy, with over $25 billion in lost revenue to date.
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