PM Al-Sudani: Baghdad-Erbil cooperation strengthened by budget amendment

Shafaq News/ On Monday, Iraqi Prime Minister Mohammed Shia Al-Sudani met with Kurdistan Regional Government (KRG) Deputy Prime Minister Qubad Talabani.
According to a statement from Al-Sudani’s office, the talks emphasized strengthening cooperation between Baghdad and the Kurdistan Regional Government, particularly in light of Parliament’s recent approval of a budget amendment which is "expected to expand avenues for institutional cooperation and provide an opportunity to resolve common administrative challenges."
Reflection of Federal Budget on Kurdistan
On Sunday, the Iraqi Parliament voted on the first amendment to the federal budget law for 2023-2025 (Law No. 13 of 2023), a measure aimed at addressing key financial and economic issues between the federal and regional governments.
Under the new provisions, the KRG is required to supply 400,000 barrels of oil per day to the State Organization for Marketing of Oil (SOMO). The amendment also increases compensation for international oil companies operating in the region from $6.90 to $16 per barrel. In case of disagreements over production and transportation costs, the Iraqi Ministry of Oil will appoint an independent party to determine expenses.
Furthermore, the amendment aligns oil exports from KRG-controlled fields with federal policies, allowing the region to boost revenues while contributing to the reduction of the federal budget deficit.
Beyond oil-related provisions, the amendment introduces a more stable financial mechanism that supports the Kurdistan Region’s economic development and addresses key issues related to salaries and financial entitlements.