Kurdistan Region will annually have more than $5 billion if exports reach 450k oil barrel
Former Kurdish Parliament Member in Baghdad believes that the agreement between Erbil and Baghdad will enable Kurdistan Region to secure IQD 20 trillion.
According to the agreement, between Kurdistan region and Iraqi central government, KRG will sell 250,000 oil barrels per day for the federal government and in return, Baghdad will provide Kurdistan Region the %17 budget share.
Kurdistan Region want to produce more than this volume and keep the revenue of the rest for itself, but Baghdad finds it illegal.
The head of Oil and Gas Committee in Kurdistan Parliament, Sherko Jawdat told BasNews that according to his information, KRG will sell 250,000 oil barrels through Iraqi SOMO Company as well as selling 300,000 oil barrels of Kirkuk oil that in return Baghdad will give KRG the %17 share of the budget. After this volume, if KRG export any oil barrel, the income will be %100 for KRG.
Furthermore, KRG senior officials pointed out that by the end of 2014, KRG will be able to export 450,000 oil barrels per day. Commenting on Kirkuk oil, the head of Kirkuk Council Rebwar Talabani told BasNews that Kirkuk has the capability of exporting 400,000 oil barrels per day, but Baghdad states “KRG can’t sell more oil than the volume that has been set for.”
Based on BasNews calculation, if KRG is capable of selling 200,000 oil barrels in addition to the volume that has been set by Baghdad [250,000] then from 2015, KRG will gain $14 million per day in selling 200k oil barrels if the price of per barrel is $70. Monthly, it will reach to $450 million and annually it will reach to more than $5 billion.
“Any deal with oil by KRG out of this volume [250k & 300k oil barrels] it will be illegal and violation of the agreement,” read the statement of Baghdad Oil Ministry.
Kurdish Parliament Member in Kurdistan Region Parliament Frsat Sofi pointed out that in the latest meeting with Higher KRG’s higher oil and gas committee, they have said that if no obstacles appear, KRG will export more than 500,000 oil barrels per day from the beginning of 2015.
Moreover, Deputy Prime Minister of KRG Qubad Talabani recently stated that the income of oil will be for the people of Kurdistan Region and foreign oil companies if KRG produce more oil than the volume that has been determined for.
Former Parliament Member in Oil and Gas Committee in Baghdad Hassan Bayazidi spoke to BasNews, and says “according to the agreement, Kurdistan Region’s share in 2015 budget of Iraq will be about IQD19 to IQD20 trillion and this share will be enough for investment and the provide the salaries of all the employees of KRG.”
He noted that it is important for KRG to have plans in 2015, so that Kurdistan Region would not face the same financial crisis as 2014.
“In 2015, people of Kurdistan Region will see the benefit of the agreement and the economy situation of the region will get better,” said Bayazidi.
Source: BasNews, 10.12.2014