Baz Rauf Karim, CEO of domestic energy company KAR Group, on Wednesday welcomed the November 5 decision by the Iraqi Council of Ministers to amend the Iraqi budget law, which could pave the way for the resumption of the Kurdistan Region’s oil exports.
Read More: Iraqi Government Approves Kurdistan Oil Exports
On March 25, 2023, Kurdish crude exports through Turkiye were stopped after an international arbitration court ruled in favor of Baghdad against Ankara, halting 450,000 barrels per day of crude oil exports to international markets.
The Association of the Petroleum Industry of Kurdistan, which represents several international oil companies in Iraq, has not yet released a statement on the recent decision.
In a post on X, Karim said that the decision is a strategic step in the right direction. “It contributes to bridging perspectives and enhancing cooperation and integration between the federal government and the Kurdistan Region in the oil sector,” he explained.
يمثل قرار مجلس الوزراء بتعديل المادة (12/ثانياً/ج) من قانون الموازنة الثلاثية، خطوة استراتيجية في الاتجاه الصحيح، تُسهم في تقريب وجهات النظر وتعزيز التعاون والتكامل بين الحكومة الاتحادية وإقليم كردستان في قطاع النفط.
— Baz Raof Kareem (@bazbarzinji) November 6, 2024
إن تعويض كلف الإنتاج والنقل للنفط المنتج في الإقليم يعكس… pic.twitter.com/ujMrXjIzyf
“Compensating production and transportation costs for oil produced in the region reflects a shared commitment to sustainable development and equitable resource distribution, laying the foundation for a new phase of constructive partnership that benefits everyone.
“At KAR, we affirm our commitment to supporting this path and working side by side with our partners in the federal government and the regional government to achieve this noble goal, which will bring prosperity and development to Iraq.”
The Kurdistan Regional Government (KRG) Council of Ministers held a meeting on Wednesday to discuss the federal government’s recent proposal to amend the budget law.
The KRG Council of Ministers reiterated its stance that KRG oil exports through the State Organization for Marketing of Oil must resume swiftly, as this aligns with the interests of both the federal and regional governments, as well as oil companies.
The KRG’s Council of Ministers hopes that amending Article 12 in the Iraqi budget law will pave the way for resolving the issue and enable the export of oil produced in Kurdistan to global markets.
“This will undoubtedly play a crucial role in increasing national revenue and fostering progress in this sector,” the KRG said in a statement.
