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FRI, 5 MAR 2021 Kurdistan Region (GMT +3)
KDP FR ■  MON, 4 JAN 2021 11:57

The Federal and Regional Governments have agreed on the 2021 budget

The Director of the Iraq National Oil Marketing Company SOMO, Alaa Al-Yasiri, announced that Kurdistan is exporting 430,000 barrels per day through the Turkish port of Ceyhan, revealing that the draft budget for 2021 obliges the Regional Government to deliver 250,000 barrels per day.

"An agreement has been reached to export oil by advance payment," Al-Yasiri was quoted as saying. Adding that SOMO is the only company authorized to export and import surplus oil products and crude oil.

Al-Yassiri ranked Iraq as OPEC's second largest crude oil exporter, saying that the OPEC agreement had a positive impact on Iraq, revealing that Iraq was able to contract with the largest government companies in Indian, Chinese and Korean markets.

The Director of the National Oil Marketing company said that Iraq received $2 billion at zero interest with a premium above the price due to the pre-sale, indicating that a Chinese company won the contract to buy oil in advance.

With regard to Kurdistan oil, Al-Yassiri explained that most of the contracts indicate that the Region’s oil is sold for less than $6 to $9 than it does through Sumo, noting that the amount of oil exported from the Region through the Turkish port of Ceyhan is 430,000 barrels per day.

Al-Yassiri revealed that SOMO's ability to take oil in Kurdistan for export purposes, noting that the draft 2021 budget commits the Regional Government to deliver 250,000 barrels per day.

On December 13, a Delegation of Kurdistan met with the Iraqi ministers of finance and oil in the presence of SOMO to determine the amount of oil exported from the Region and the amount of non-oil revenues.

On August 15, Baghdad and Erbil reached an agreement committing the Federal Government to send the Kurdistan Region, 320 billion dinars per month until the budget law is voted on, for a period of three months. But on November 12, the Iraqi parliament approved the law on financing the fiscal deficit, despite the withdrawal of Kurdish deputies in opposition to the article that stipulates that Kurdistan's share of total actual spending is dependent on the Kurdistan Region’s commitment to pay the Federal Government the amount of oil it exports from the region and in quantities specified exclusively by SOMO in addition to non-oil revenues.

"In the event of non-compliance of the Region, the expenses may not be paid to the Region and the violator of this provision shall bear legal responsibility," the Director of SOMO warned.

The financial crisis resulting from the cutting of Kurdistan's share of the general budget since 2014 by the decision of the Iraqi Prime Minister Nouri al-Maliki, and the financial burden of the war against ISIS and sheltering about two million displaced people combined with low oil prices cast a heavy shadow on the citizens of the Kurdistan region for years.

The amount of oil that the Kurdistan Region exports is estimated at 430 thousand barrels during the sale of this oil, and after paying the oil prices in oil the record is 300 million dollars.

The amount of oil exported by the Kurdistan Region is estimated at 430 thousand barrels, and through the sale of this oil, and after paying the wages of the producing oil companies it can obtain 300 million dollars per month, but it suffers a deficit of between 400 and 450 million dollars to secure the salaries of the public Employees.

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