Page 11 - DMEA Week 06 2021

DMEA POLICY DMEA

Kurdish deputy PM says region

ready to fulfil oil obligations

IRAQI KURDISTAN THE Kurdistan Regional Government (KRG) persisting about oil exports from the Kurdistan
is ready to fulfil the obligations set out in Iraq’s Region.
The Iraqi cabinet federal budget for 2021, according to Qubad As with previous budgets, the KRG should
approved the Talabani, the region’s deputy prime minister and receive 12.67% of the total budget, equating to
government’s draft head of a delegation negotiating with Baghdad. around $13bn, but there remain issues related to
$103bn budget in late Speaking to the local al-Sabah newspaper this budget payments to Erbil being contingent on it
December. week, he said: “The Kurdistan region is ready to handing over 250,000 bpd of crude to Iraq’s State
implement all its obligations with the federal Oil Marketing Organization (SOMO) and giving
government, whether by providing 250,000 the revenues to the central treasury.
barrels per day [bpd] of crude oil or exporting Talabani said: “We are ready to implement
non-oil resources through the region’s outlets, in this agreement,” noting that the federal gov-
accordance with the Iraqi constitution.” ernment in Baghdad had only paid the KRG its
Following a preliminary agreement in share during six months of 2020, with funding
December on the KRG’s share of the 2021 “intermittent” for three of these months.
budget, Talabani said: “now our discussions are Meanwhile, speaking to the Iraqi National
with political parties,” adding that the issue of the News Centre, Talabani said: “We hope to build a
budget is “in the hands of [the Iraqi] Parliament, new oil and finance relationship with the central
and we hope that we will reach a positive result government, and we have faith that this will be
with a fair and implementable agreement”. achieved step by step, until we reach the estab-
He alluded to the state of negotiations, not- lishment of a new SOMO company in which
ing that in recent discussions “the Parliamen- there are Kurdish members on the board of
tary Finance Committee asked us 13 questions directors [BoD].”
related to oil, export, domestic consumption and He added that it should be restructured to
other figures.” include Kurdish members on its BoD to “handle
In late December, the Iraqi cabinet gave its the issue of oil prices in an appropriate manner,
approval to the government’s draft 150 trillion serving the country, including the Kurdistan
dinar ($103bn) budget for 2021 despite issues Region.” ™

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