Iraq’s parliament wrapped up its session without finalizing a deal regarding the export of crude oil from the semi-autonomous Kurdish region.
Local media reported that the deal was slated for discussion last Thursday, along with several other topics. However, no updates or decisions have been made since, indicating that the matter has been postponed until January, when the new parliamentary session begins.
According to Shafaq news, the issue of Kurdish oil exports caused a deadlock among lawmakers who couldn’t agree on the compensation Baghdad would owe the Kurdish government for the costs of producing and transporting the oil. This disagreement led Kurdish lawmakers to withdraw from the discussion, effectively halting the talks.
A Kurdish member of parliament told Shafaq that the main sticking point was the cost of oil extraction in Kurdistan. He suggested that to resolve the issue, “a specialized international company would visit the KRG’s oil fields to assess the cost of extraction,” in accordance with the budget law amendment and a political agreement between the two sides.
Kurdish crude oil exports have been on hold for over a year due to a dispute between Iraq’s central government in Baghdad and Turkey over who holds the authority to approve these deliveries. The standoff followed a ruling by the International Chamber of Commerce (ICC) in March 2023, which sided with Iraq, asserting that Turkey should not allow Kurdish oil exports through the Iraq-Turkey pipeline and the Turkish port of Ceyhan without approval from Baghdad.
The ruling has affected international oil companies operating in Kurdistan, causing them to suspend operations until they receive clarity on any changes to their terms. Meanwhile, a separate dispute between Baghdad and Erbil over the oil sales and revenue distribution remains unresolved, with most issues settled but the final deal still pending.
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