Al-Azm Alliance urges action on $18B oil export loss
Shafaq News/ On Monday, theAl-Azm Alliance head, Muthanna al-Samarrai, called on Iraq’s parliament tourgently pass budget amendments to address the $18 billion economic losses causedby the suspension of oil exports from the Kurdistan Region.
“The oil sector is the backbone of Iraq’seconomy,” al-Samarrai stated, warning that “the ongoing export halt, along witha partial suspension of Kirkuk’s oil, has cost the country over $18 billion inrecent months.”
He attributed the export halt to “technicalissues” surrounding production and transportation costs, as well as outstandingpayments to international oil companies operating in the Kurdistan Region.
Al-Samarrai highlighted the disparity inproduction costs, noting that “Basra oil fields average $6 per barrel, whereassome fields in the Kurdistan Region exceed $20 per barrel.”
“The $16 production cost referenced in theproposed budget amendment is only a preliminary figure, subject to review byadvisory bodies and the Federal Board of Supreme Audit.”
The Al-Azm Alliance leader underscored theurgency of passing the amendment to stabilize Iraq’s economy, address fiscaldeficits, and ensure oil revenue provisions are upheld.
“Oil exports are managed through the StateOil Marketing Organization (SOMO) in accordance with constitutional guidelinesand Federal Supreme Court rulings.”
Al-Samarrai concluded by urging lawmakersand coalition leaders to support the budget law amendment, stressing thatimmediate action is essential to safeguard Iraq’s economic stability.
Since the suspension ofKurdistan Region oil exports on March 24, 2023, the Federal Oil Ministry hascompensated for the 400,000-barrel-per-day shortfall by increasing exports fromsouthern provinces to maintain Iraq’s OPEC production quota.
