ERBIL, Kurdistan Region – Iraq’s State Oil Marketing Organization (SOMO) is set to increase the amount of the Kurdistan Region’s oil used domestically by next month, a member of the Iraqi parliament told Rudaw on Thursday, as the halt of the Region’s oil exports continues to hinder its ability to meet its federal budget obligations.
Article 13 of the Iraqi federal budget obliges the Kurdistan Region to hand over, on a daily basis, at least 400,000 barrels of crude oil to SOMO to be exported through Turkey’s Ceyhan port, or be used domestically in case it is not exported.
The Region’s oil exports have been put on pause since late March after a Paris arbitration court ruled in favor of Baghdad against Ankara, saying the latter had breached a 1973 pipeline agreement when it allowed the Kurdistan Region to carry out independent oil exports in 2014.
During a meeting between members of the Iraqi parliament’s finance committee and SOMO on Thursday, the parties discussed future uses of the Kurdistan Region’s oil, as the suspension continues.
“Currently around 80,000 barrels of Kurdistan Region oil are being used daily in the Iraqi refineries, and the amount is expected to increase to 120,000 by October 20,” Narmin Maarouf, a member of the finance committee told Rudaw.
Arif al-Hamami, a State of Law Coalition MP, said that drafting a hydrocarbon law would resolve many of the problems that have emerged from the ongoing interferences from Erbil and Baghdad in regards to oil.
Delegations from the Iraqi oil ministry and the Kurdistan Regional Government have held meetings in recent months aimed at reaching a consensus on the final draft of the country’s much-needed hydrocarbon bill before it is presented to the Council of Ministers.
Erbil and Baghdad signed an agreement to resume the Region’s exports in April, but over five months later, there is still no oil flowing through the pipeline to Turkey, as Ankara claims to be inspecting the port tubes that might have been damaged following February’s earthquake.
Reference: https://www.rudaw.net/english/business/15092023