The Iraqi cupboard has approved an amendment to the budget law, compensating the Kurdistan local authorities (KRG) for manufacturing and transportation prices of oil produced in the place and obtained through the country Oil marketing employer (SOMO) or the Federal Ministry of Oil.
It stated the Federal Ministry of Finance will compensate these expenses in advance at a price of $16 per barrel.
Oil exports via the Iraq-Turkey Pipeline (ITP) have been suspended in March 2023 following a dispute between Baghdad, Erbil and Ankara.
dinaropinions.com has approached the affiliation of the Petroleum enterprise of Kurdistan (APIKUR) and the Kurdistan nearby government (KRG) for comment.
complete announcement from the Media workplace of the prime Minister:
The Council of Ministers approved an offer to amend Article 12/2nd/c of the 3-12 months finances law No. thirteen of 2023 as follows:
1. The Federal Ministry of Finance will compensate the Kurdistan regional authorities (KRG) from sovereign fees for the production and transportation charges of oil produced inside the place and received by means of the kingdom Oil advertising and marketing employer (SOMO) or the Federal Ministry of Oil, based on subparagraphs (a) and (b). manufacturing and transportation expenses for each area could be anticipated pretty with the aid of an the world over specialized consulting entity, as agreed upon through the Federal Ministry of Oil and the KRG’s Ministry of natural sources, within 60 days of the regulation’s enactment. If no agreement is reached inside this period, the Federal Council of Ministers will decide the consulting entity.
2. The consulting entity noted inside the preceding paragraph will publish expected production and transportation prices to the Federal Ministries of Oil and Finance and the KRG. these may be followed for the functions of this regulation, with repayment calculated based totally on the envisioned price in keeping with barrel, accelerated by way of the number of barrels acquired as in keeping with subparagraphs (a) and (b). The Federal Ministry of Finance may be answerable for paying the reimbursement to the KRG.
three. Oil produced in the region need to be right now introduced to SOMO or the Federal Ministry of Oil, consistent with subparagraphs (a) and (b). The Federal Ministry of Finance will compensate manufacturing and transportation prices earlier at a rate of $sixteen in keeping with barrel, to be settled retroactively after the of completion of the aforementioned consulting entity’s assessment.
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