Latest news with #BudgetLaw
Shafaq News
5 days ago
- Business
- Shafaq News
Kurdistan responds to Baghdad: A political statement detached from facts
Shafaq News/ The Kurdistan Regional Government (KRG) has sharply rebuked a recent statement issued by Iraq's Ministry of Oil, accusing Baghdad of distorting facts and perpetuating constitutional violations in a deepening dispute over oil production and revenues. Earlier today, the Federal Ministry of Oil called on KRG to adhere to the Constitution, court rulings, and the Budget Law by delivering oil to federal authorities. It warned that ongoing non-compliance 'causes major financial losses to Iraq and damages Iraq's international reputation,' citing alleged 'smuggling' from the Region and vowing legal action. In a detailed press release issued on Thursday, the KRG's Ministry of Natural Resources described the federal ministry's remarks as 'a political statement that is far removed from objective facts,' and held the federal government responsible for policies that have led to economic harm, halted exports, and undermined constitutional principles. "You are the ones who blatantly and continuously violate the constitution and have stood as an obstacle to passing the Federal Oil and Gas Law for many years," the ministry declared, directly challenging Baghdad's narrative. Oil Smuggling and Export Halt The Kurdish Ministry rejected accusations of oil smuggling, calling them a deflection from corruption and smuggling operations occurring 'in other parts of Iraq,' and accusing federal authorities of 'mixing oil and serving the interests of others instead of serving Iraq and its people.' Contrary to Baghdad's assertions, the KRG stated that it was not responsible for the halt in oil exports. Instead, the ministry pointed to a legal dispute initiated by the Federal Ministry of Oil itself against the Turkish Ministry of Energy, which resulted in the suspension of exports on March 25, 2023—causing what it described as losses 'exceeding $25B.' Although a new agreement to resume exports was reached just days later on April 4, 2023, Kurdish officials say federal budgetary conditions made it financially unfeasible for companies to operate. 'The budget law stipulated a production cost of $6 per barrel, prompting most producing companies to cease production under this restriction,' the ministry said. Despite this, the Region delivered over 11.8 million barrels of oil to a refinery working on behalf of the Ministry of Oil. However, 'not a single dinar was paid' for these quantities, prompting companies to halt further deliveries. Disputed Legal and Constitutional Grounds The Kurdish ministry emphasized that Iraq's ongoing oil disputes stem from the federal government's failure to 'respect' constitutional rights and to enact the long-delayed Federal Oil and Gas Law. While noting that a joint committee was formed at the beginning of the current federal government to draft the law, the ministry cited "noticeable delay and procrastination" by Baghdad, suggesting an absence of political will to resolve the issue. Referring to the Kurdistan Region's own Oil and Gas Law No. 22 of 2007, the ministry defended its contracts with international oil companies, claiming that the legality of these contracts has been implicitly affirmed by global investment. 'Had there been any real legal issue with these contracts, globally reputable companies would not have invested billions of dollars in the Region,' the statement noted. Federalism and Cooperation The ministry also reiterated the Region's commitment to constitutional federalism, emphasizing that it has consistently shown readiness to compromise and cooperate, including by agreeing to sell its oil through SOMO, deposit revenues in the state treasury, appoint a consulting firm, and open an escrow account. 'This renders your Ministry's claims about the futility of previous negotiations with the Region completely baseless,' the ministry stated, citing a 'flexibility and willingness to cooperate' that, it said, Baghdad has failed to reciprocate.
Shafaq News
03-06-2025
- Business
- Shafaq News
PM Al-Sudani, KIU lawmakers discuss budget issues
Shafaq News/ On Tuesday, Iraqi Prime Minister Mohammed Shia Al-Sudani met with members of the Kurdistan Islamic Union (KIU) Parliamentary Bloc. According to a statement from Al-Sudani's media office, the meeting addressed several issues including the government's performance and the financial crisis in the Kurdistan Region. Both sides stressed the need for a resolution to the Region's entitlements based on the Federal Budget Law and the ruling of the Federal Supreme Court. 'The importance of passing the Oil and Gas Law was also emphasized.' The KRG is required under Budget Law to deliver a specified amount of oil to the federal government, transfer part of its non-oil revenues, and share financial data. During the meeting, the KIU members commended the government's efforts in 'service delivery and visible reforms.'
Rudaw Net
09-05-2025
- Business
- Rudaw Net
Oil association urges renewed efforts to resume Kurdish exports
Also in ECONOMY Iraq tells Turkey it needs more time to restart Kurdish oil exports Dana Gas says to begin production at Chamchamal field next year KRG calls for restart of Kurdish oil exports 'as soon as possible' KRG transfers control of digital salary payment program to finance ministry A+ A- ERBIL, Kurdistan Region - Oil producers in the Kurdistan Region on Sunday called for increased efforts to resume the long-halted Kurdish oil exports through the Iraq-Turkey pipeline (ITP). In a statement, the Association of the Petroleum Industry of Kurdistan (APIKUR) said that their latest meeting with the Iraqi government and the Kurdistan Regional Government last week 'did not result in any agreements.' 'The GoI [Government of Iraq] continues to publicly express the importance of oil exports through the ITP but engagements thus far have been limited and unproductive. APIKUR calls for redoubling of efforts to find mutually beneficial solutions,' the statement said. Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin exporting oil independently in 2014. Despite ongoing talks between Erbil, Baghdad, Ankara, and oil producers - with added pressure from the United States - the exports remain stalled, with their suspension costing Iraq billions of dollars in revenue. 'APIKUR member companies have repeatedly proposed solutions that satisfy, both, Iraq's Budget Law and comply with international oil company contracts which have been validated in Iraq's courts,' said APIKUR spokesperson Myles Caggins. 'We regret the lack of progress, nevertheless we will continue to push for a resumption [of] oil exports.' The oil association also lamented that 'no substantial discussions' have taken place with Baghdad and Erbil on their proposals for payment mechanisms, stressing that multiple recommendations have gone unaccepted. 'APIKUR member companies remain ready to immediately resume exports through ITP once binding agreements are in place that ensure payment certainty for such exports in like with each IOC's existing contractual terms,' the statement added. In early April, APIKUR said that their investments have been 'fundamentally harmed' by the closure of the pipeline and that they are in a 'hurry' to resume the oil exports, for which they have been 'at forefront to push negotiations with Baghdad.' In early February, the Iraqi parliament approved amendments to the federal budget law, authorizing a $16-per-barrel fee for production and transport costs in the Kurdistan Region - a move seen as a crucial step toward restarting exports. The amendments also require both the federal government and the KRG to establish an international technical consultancy within 60 days to assess production and transportation costs for oil fields in the Kurdistan Region. If an agreement cannot be reached, the federal council of ministers will appoint the consultancy.
Iraq Business
29-04-2025
- Business
- Iraq Business
APIKUR Criticises Baghdad Oil Pipeline Engagement
By John Lee. Representatives of the Association of the Petroleum Industry of Kurdistan (APIKUR) and other international oil companies met with Iraqi and Kurdish officials on 20th April to discuss restarting oil exports via the Iraq-Türkiye Pipeline, but according to a statement from APIKUR on Sunday, no agreement was reached. The trade body said its member companies remain ready to resume exports once binding agreements ensuring payment certainty and addressing arrears are in place, and they have proposed several solutions that align with Iraq's Budget Law and existing contracts. It added that despite public statements supporting a restart, the Iraqi Government's engagements have been "limited and unproductive", with no substantive progress on payment arrangements. Full statement from APIKUR: Representatives of member companies from the Association of the Petroleum Industry of Kurdistan (APIKUR) and other International Oil Companies (IOCs) participated in a meeting on April 20 with officials from the Government of Iraq (GoI) and the Kurdistan Regional Government (KRG) to discuss the resumption of oil exports via the Iraq-Türkiye Pipeline (ITP). Unfortunately, the meeting did not result in any agreements. APIKUR member companies remain ready to immediately resume exports through ITP once binding agreements are in place that ensure payment certainty for such exports in line with each IOC's existing contractual terms, and that resolve all outstanding payment arrears. APIKUR acknowledges the Governments' need to ensure consistency with Iraq's Budget Law. We also note that the KRG's contracts with IOCs have been deemed legal and valid by Iraq's courts; therefore, any payment arrangements, including the scope of work for an international consultant must satisfy both Iraq's Budget Law and the IOCs' existing contracts. With this in mind, multiple solutions and recommendations have been proposed-publicly and privately-by a number of member companies of APIKUR to the GoI and KRG. The recommendations included a proposed scope of work for the international consultant that met the test of consistency with both Iraq's budget law and IOC contracts. However, this has not yet been accepted. On APIKUR proposals for payment surety for future exports, the Governments have indicated willingness to consider options. Notwithstanding, no substantive discussion of arrangements required to ensure payment has taken place. And no progress has been made on the issue of IOC payment arrears. The GoI continues to publicly express the importance of oil exports through the ITP but engagements thus far have been limited and unproductive. APIKUR calls for redoubling of efforts to find mutually beneficial solutions. "APIKUR member companies have repeatedly proposed solutions that satisfy, both, Iraq's Budget Law and comply with international oil company contracts which have been validated in Iraq's courts," said Myles B. Caggins III, spokesman for the Association of the Petroleum Industry of Kurdistan. "We regret the lack of progress, nevertheless we will continue to push for a resumption oil exports through the Iraq-Türkiye Pipeline." (Source: APIKUR)
Iraqi News
04-04-2025
- Business
- Iraqi News
Oil Ministry : PM confirmed that sale of oil with illegal frameworks is an infringement of Iraqi people's right
The Ministry of Oil issued a statement on Friday regarding the resumption of exports through the Iraq-Turkey pipeline, while pointing out that Prime Minister Mohammed Shia Al-Sudani stressed that the sale of oil with illegal frameworks is an infringement on the rights of the Iraqi people. 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."
