THE PARLIAMENTARY OIL COMMITTEE REVEALS THE REGION’S APPROVAL TO HAND OVER ITS OIL AND REVENUES, AND AN IMPORTANT MEETING WILL BE HELD WITHIN TWO DAYS

 THE PARLIAMENTARY OIL COMMITTEE REVEALS THE REGION’S APPROVAL TO HAND OVER ITS OIL AND REVENUES, AND AN IMPORTANT MEETING WILL BE HELD WITHIN TWO DAYS 

Ali Shaddad al-Faris, a member of the Oil and Gas Committee, revealed that the Kurdistan Region has agreed to hand over its oil and financial revenues to the federal government as part of agreements aimed at easing tensions between the two sides. He also confirmed that a high-level meeting will be held within the next two days between the central and regional governments.

Al-Fares explained, during his appearance on the “Free Talk” program on Al-Furat satellite channel, that: “The regional government will hand over 120 billion dinars per month in non-oil revenues, in addition to handing over 230,000 barrels of oil per day to SOMO in exchange for paying employee salaries.”

He explained that “production from refineries and domestic consumption in the region does not exceed 110,000 barrels per day, while OPEC confirmed the smuggling of up to 300,000 barrels from the region,” noting that “400 smuggled oil tankers were recently seized in Afghanistan.”

Al-Fares pointed out that “the region has demanded that the government impose oil transport fees through the port of Ceyhan, which passes through its territory, and that these points raise disputes with the federal government due to their conflict with the budget law, which the latter has rejected.”

He stressed that “the agreement included contracting with an American consulting firm to assess the production rate and lifespan of oil wells, a significant issue for the region that has yet to be resolved.”

Regarding the electricity sector, Al-Fares pointed to “fears of a gas shortage by 2028, which will impact the operation of power plants, especially with increasing demand and the unsuitability of current infrastructure,” ruling out “Iraq’s ability to achieve self-sufficiency by 2028.”

He noted “the presence of significant investments from major companies such as Total of France, which is investing in projects worth $600 million, in addition to local investments in the Akkaz field, which contains a strategic gas reserve that has not yet been optimally exploited.”

Al-Fares added, “There is significant overlap between the ministries of oil and electricity and the governorates, which hinders cooperation,” stressing that “Parliament intends to amend the governorate law to grant local governments the authority to manage energy distribution and address disruptions.”

Regarding petroleum derivatives, Al-Fares emphasized “the success of the refining sector, which has achieved self-sufficiency in kerosene and reduced the need for gasoline, while emphasizing the need to boost investment in this sector to achieve complete self-sufficiency.”