KRG reiterates commitment to its obligations stipulated in the Federal Budgets

Shafaq News/ The spokesperson of the Kurdistan Regional Government (KRG), Gutyar Adel, reiterated the Government's commitment to fulfilling the obligations pinned upon it in the Federal Budget of the current year.

In a press conference held today, Wednesday, Adel said, "we exhibited commitment to abide by what is stipulated in the Iraqi budget law," indicating that KRG had submitted all the data related to the implementation of the law.

Under the 2021 budget law, which was passed by a majority of Arab and Kurdish legislators, Iraqi Kurdistan will be committed to producing no less than 460,000 bpd of oil.

After deducting expenses for production operations in the region, transport of oil, and the domestic consumption of crude oil, the KRG must hand over to Baghdad revenues generated from regional oil exports of 250,000 bpd, according to Iraq's Oil Marketing Company (SOMO) pricing. KRG must also hand Baghdad half of the Region's non-oil revenues in exchange for a share that equals 12.6% from the entire value of the Federal Budget. 

KRG's spokesperson hinted at a breakthrough in the joint work of the Oversight departments in the Regional and Federal Governments, indicating that both departments will release reports on this matter in the future. 

Adel said that the Region is currently producing 430,000 oil bpd; only 30% are devoted to domestic use.

"Baghdad's pressure prompted us to sell at lower prices than the market. However, the current budget provided a legitimacy cover for the Region to sell its oil." 

On raising fuel prices, Adel said, "the government is working on rendering the prices in favor of the citizens. However, we cannot compare our situation to Baghdad's. Baghdad has five refineries. We only have two." 

"We decided to release the salaries every 30 days. It may be delayed a day or two but not more," he added.