Text of the agreement between the federal government and the Kurdistan Regional Government17 Jul 2025 13:57
Today, Thursday (July 17, 2025), the federal government and the Kurdistan Regional Government (KRG) reached a historic agreement that defines the details of oil export and the allocation of fiscal revenues, thus enhancing financial and economic stability in the region.
According to a report received by "Baghdad Today", "The text of the agreement is that the Kurdistan Regional Government will start exporting all oil produced in the region's fields (230) at a rate of two hundred and thirty thousand barrels per day, in addition to any future increases through the state oil marketing company (SOMO). The Federal Ministry of Finance pays $16 per barrel to the KRG under the Federal Budget Amendment Law.
The report added that "50,000 barrels per day are allocated for local consumption in the Kurdistan region, provided that the regional government pledges to pay the cost of producing this quantity," noting that "in the event that the region needs it, the Federal Ministry of Oil allocates it for a production quantity equivalent to refining 15,000 barrels. A joint committee from the Federal Ministry of Oil and the KRG's Ministry of Natural Resources will assess the region's actual need for petroleum products for privatization purposes and submit its report within two weeks."
Regarding the non-oil revenues file, the report noted that the Kurdistan Regional Government is providing 120 billion dinars to the Federal Ministry of Finance for the months of May and June, adding that "a working group will be formed from the federal and regional financial supervisory bodies to audit and classify oil revenues and determine the federal government's share of them, within a maximum period of one month."
"The Ministry of Finance will immediately start paying the salaries of KRG employees for May, June and subsequent months," he said.
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