Iraqi Oil Minister Announces Start of Procedures to Deliver Kurdistan Oil to SOMO

Iraqi Oil Ministry's Media

Iraqi Oil Minister Hayyan Abdul Ghani.

The Iraqi Oil Minister announced the start of procedures for delivering Kurdistan Region oil to the Iraqi Oil Marketing Company (SOMO).

Oil Minister Hayyan Abdul Ghani said in a statement to Iraq's state media (INA) that the Ministry of Oil has begun procedure by submitting an official letter to the regional government to deliver oil legally to the Marketing Company (SOMO). 

He emphasised that the Iraqi federal government can receive and export oil products from the Region through the national company.

He stated that protocols are in place with the Turkish government to prepare the Iraqi-Turkish pipeline for oil exports through Ceyhan's port.

Abdul Ghani also noted that the Region must deliver at least 300,000 barrels of oil per day to the federal Ministry of Oil for export via the Iraqi-Turkish pipeline, stating that "the debts owed by the Kurdistan Region are being agreed upon between the two parties."

The Iraqi parliament passed during its regular session on Sunday, 2 February 2025, on the draft of the first amendment to Article (12) of Law No. (13) of 2023, the federal general budget of the Republic of Iraq for the fiscal years (2023-2024-2025). The amendment will allow the resumption of oil exports from the Kurdistan Region's oil fields.

Under the approved amendment, the actual value of the Kurdistan Region's oil production and transportation has been set at $16 per barrel. This amount will be provided as an advance to the Kurdistan Region until the actual value of oil production and transportation from each field in the Kurdistan Region is determined separately by the competent advisory bodies, after 60 days from the implementation of the Federal General Budget Law.



PUKMEDIA