Iraq and Kurdistan Reach Breakthrough in Oil Dispute

Iraq's parliament has approved a budget amendment to subsidize production costs for international oil companies in Kurdistan. This move is seen as a step to unblock northern oil exports and resolve disputes between Baghdad and Erbil. The amendment sets a new production cost rate to encourage cooperation.

Iraq's parliament has taken a significant step toward resolving a prolonged dispute with the Kurdistan Regional Government by approving a budget amendment. This amendment aims to subsidize production costs for international oil companies operating in Kurdistan, setting a new rate of $16 per barrel.

The decision seeks to facilitate the resumption of oil exports halted due to disagreements and economic strains, including delayed salaries in Kurdistan. This move is expected to strengthen ties between Baghdad and Erbil, potentially boosting the country's oil revenues.

Lawmaker Rebwar Orhaman emphasized the importance of this approval in expediting Kurdish oil exports. Plans are underway to appoint an international consultant to ensure fair production costs unless an agreement is reached. Additionally, the KRG is expected to transfer its oil output to the State Oil Marketing Organization.

(With inputs from agencies.)