RE: A bit of good news-ish12 Jan 2024 18:33
After the representatives of foreign companies in the Kurdistan Region rejected the price of $6, SOMO offered them another option, the option is to renew their contracts with the Iraqi government and agree on a new price. As is the case in Iraq, company representatives have rejected this proposal.
According to the investigations (Draw), SOMO and foreign companies in the oil sector are now drafting a new agreement, an agreement that will set another price for production and transportation of oil between the Iraqi $6 and $32 in the Kurdistan Region.
The Economic Office of the Federal Oil Ministry estimated the cost of production and transportation of oil in the Kurdistan Region at 8,960 dinars ($6.9) per barrel, while the Ministry of Natural Resources estimated the average cost at $32.91.
This is not the first time foreign oil companies in the Kurdistan Region have met with Iraqi oil sector officials Erbil and Baghdad, November 8, 2023 in Dubai Representatives of the Iraqi Oil Ministry proposed to the Iraqi Oil Ministry that SOMO buy the oil produced in the Kurdistan Region, because according to the contract with the Kurdistan Regional Government
The companies also demanded a clear and detailed legal agreement for the sale and export of oil, including payment of oil sales in the past and future, as a condition for the resumption of oil exports. These companies are owed $1 billion by the Kurdistan Regional Government (KRG).
The Kurdistan Regional Government (KRG) has lost about 80 percent of its revenues since March 25, 2023, when oil exports to the Turkish port of Ceyhan were suspended. They agreed to hand over the process of selling its oil and its revenues to Baghdad just for that. Now that Turkey has expressed its readiness to resume oil exports from the Kurdistan Region with Iraq's consent, the federal government wants to resolve its long-standing dispute before resuming exports.
The KRG's current oil negotiations are only about the issues that are disputed in the budget law, especially the price of oil production and transportation, the other issue is the drafting of the oil and gas law.
The KRG's current oil negotiations are only about the issues they disagree on in the budget law, especially the price of oil production and transportation. The other issue is the preparation of a draft oil and gas law, a law that if in parliament would be the first time in post-Saddam Iraq.
It will settle the oil and gas sector between the federal government and the Kurdistan Regional Government (KRG) and will be a legal document before international courts for any future disputes between Erbil and Baghdad over natural resources.