Cabinet advances proposal for northern oil export restart
Iraq's main political factions appear to have an initial agreement for paying Kurdistan's oil companies for exports, but legislative, legal, and practical hurdles remain.
Iraqi Prime Minister Mohammed Shia al-Sudani (right) and KRG Prime Minister Masrour Barzani (left) speak at a ceremony for the signing of a framework deal to restart Iraq's northern exports in Baghdad on April 4, 2023. (Photo credit: Prime Minister's Office)
Iraq's Cabinet has approved a proposal to amend the national budget law in a way that would theoretically allocate new funds to pay Kurdistan's oil contractors — a key step toward restarting northern exports via Turkey.
The proposal, which still needs to be approved by Parliament, would amend Article 12 of Iraq's national budget law to enable advance payments of $16 per barrel to the Kurdistan Regional Government (KRG) to cover the costs of producing and transporting crude for export via the federal government's marking company (SOMO), according to a senior Iraqi official directly familiar with the deal.
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