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Baghdad’s Oil Minister Initiates Kurdistan Oil Transfer to SOMO

Oil Production Transfer Between Kurdistan Region and Federal Government

Overview of Oil Handover Procedures

The Minister of Oil, Hayyan Abdel-Ghani, announced on February 3, 2025, the initiation of processes to transfer oil from the Kurdistan Region to the National Oil Marketing Company (SOMO). This action marks a significant step towards streamlining oil production and enhancing exports.

Abdel-Ghani stated that the Ministry of Oil has formally communicated with the Kurdistan Regional Government, outlining the procedure to deliver oil systematically to SOMO. This move is aimed at empowering the federal government to manage the Kurdistan Region’s oil products and facilitate exports through the national marketing company.

Coordination with Turkish Authorities

In his remarks, Abdel-Ghani emphasized ongoing discussions with the Turkish government to prepare the Iraqi-Turkish pipeline for exporting oil through the port of Ceyhan. The goal is to establish a robust framework for the efficient marketing and export of oil from the region.

Export Quantities and Financial Agreements

Abdel-Ghani clarified that the agreed-upon delivery quantity is set at a minimum of 300,000 barrels per day from the Kurdistan Region to the Federal Ministry of Oil. This oil will be exported through the Iraqi-Turkish pipeline. He also highlighted that existing debts owed by the Kurdistan Region have been formally acknowledged between both parties involved in this agreement.

Legislative Developments

In a related context, the House of Representatives recently voted on the first amendment of the Federal Public Budget Law of the Republic of Iraq for the financial years 2023, 2024, and 2025, marked as Law No. 13 of 2023. This amendment reflects the ongoing efforts to clarify financial arrangements and bolster economic stability within the framework of the country’s budget.

This series of developments indicates a pivotal moment in the relationship between the Kurdistan Region and the federal government, with implications for Iraq’s overall oil sector and economic outlook.

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