Oil Ministry : PM confirmed that sale of oil with illegal frameworks is an infringement of Iraqi people's right
The ministry said in a statement received by the Iraqi News Agency (INA), that "the ministry regrets the publication of an erroneous and misleading statement to the Apikur Association issued on March 28, 2025, which claimed that the ministry expressed its unwillingness to negotiate a solution that meets the contracts concluded between Apikur companies and the Kurdistan Regional Government, as the Ministry of Oil is working to ensure the proper application of the amendment to the Budget Law adopted on February 2, 2025, so that exports can begin through the Iraq-Turkey pipeline as soon as possible," pointing out that "the amendment of the budget law stipulates that the Federal Ministry of Finance shall compensate the Kurdistan Regional Government for the cost of producing and transporting crude oil to a Iraqi oil marketing company (SOMO) or to the Ministry of Oil.'
The ministry added that "the budget law also stipulates that the fair estimated costs of production and transportation for each field separately are calculated by an international consultant, and that these costs must be used to determine payments from the Federal Ministry of Finance to the Kurdistan Regional Government, while the amendment of the budget law requires the immediate delivery of all production in the Kurdistan Region to the Iraqi Oil Marketing Company (SOMO) and the Federal Ministry of Oil, with the application of a temporary compensation mechanism to make payments to the Kurdistan Regional Government during the international consultant's work," noting that "the Government of Iraq has taken concrete and serious steps to prove its good faith in the negotiations and ensure the resumption of oil exports through the Iraq-Turkey pipeline (ITP) pipeline quickly, and has worked continuously to ensure and serve the national interest of the country, and has made great efforts to preserve Iraq's resources and implement legal and sustainable solutions.
It explained that "Prime Minister Mohammed Shia Al-Sudani confirmed that the sale of oil with illegal frameworks outside the responsibility of SOMO and the mechanisms of selling it is an infringement on the rights of the Iraqi people, and he publicly defended the recent amendments to the General Budget Law; which were approved through a legitimate democratic mechanism; to enhance transparency and governance of the management of oil resources, and the government engaged at the highest levels to find a just solution to this issue," noting that "the main challenge in these negotiations is that every time progress is made through a certain agreement, non-positive steps are taken; but it is not by the Iraqi government, as unrealistic and extra-legal demands hinder progress towards a final settlement, especially with the emergence of new complications that contradict previous agreements.'
The ministry stressed that "such demands do not serve constructive negotiations based on good faith, and that reaching an agreed solution as soon as possible is crucial to stop non-original and illegal sales and to preserve the wealth of the Iraqi people," adding that "the Iraqi government is committed to protecting the interests of all parties and in a way that provides the supreme national interest, including the interests of international oil companies, in accordance with the laws in force and agreements concluded, and is also dedicated to providing an attractive investment environment that supports economic development and ensures a just and sustainable solution that serves everyone."
The ministry called for "an urgent meeting with the concerned parties to resume negotiations and dialogue; provided that it is subject to negotiation in accordance with the amended budget law, and to reach a clear working mechanism that preserves the rights of Iraq and guarantees its obligations towards investors," pointing out that "the main goal is to resume the export of oil through the pipeline immediately, safely and legitimately, while ensuring the rule of law and protecting national resources from any illegal exploitation."
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