Ghadban reveals the details of the oil agreement with Kurdistan .. Iraq in a temporary budget in 2020

Ghadban reveals the details of the oil agreement with Kurdistan .. Iraq in a temporary budget in 2020

Shafaq News / The federal government agreed with Kurdistan Region that the latter would hand over (SOMO) company 250 thousand barrels per day of crude oil produced there as of 1/1 of next year, while the Ministry of Oil announced that Iraq's oil production is currently four million and 500 thousand barrels daily, I confirmed that the planned export volume is three million and 880 thousand barrels, including the delivered quantity from the region.

The Deputy Prime Minister for Energy and Minister of Oil, Thamer Al-Ghadban said in a statement carried by the semi-official newspaper "Al-Sabah" in its edition issued today, Thursday. The federal government and the regional government are serious about solving problems related to the oil file between the center and the region, and accordingly recently several visits were made by the Kurdish delegation negotiating to resolve this file, the last of which was two visits focusing on the federal budget and its working mechanisms and how to calculate the region's share.

He added that the two sides set the region's obligations towards the federal government and the budget, especially that the region’s current production of crude oil reaches 450,000 barrels per day and most of it goes to export, noting that the agreement was made that the production ceiling in the region be around 450,000 barrels because this affects Iraq’s share in (OPEC).

Al-Ghadban stressed that the agreement concluded between the federal government and the region stipulates that the latter, starting from 1/1 of next year, hand over the federal government 250,000 barrels per day of crude oil produced out of the 450,000 barrels per day produced there.

On the other hand, the Finance Committee in the Parliament repeated that Iraq will enter 2020  with a "temporary budget", due to the delay in its dispatch by the current caretaker government because of a procedural legal problem, indicating that this situation is similar to what happened in the past year before the formation of the government of Prime Minister ,Adel Abdul Mahdi.

Committee member Dr. Ahmed Al-Saffar said, "It was hoped that the budget will be sent to Parliament last Thursday, but we were surprised that the Prime Minister apologized from sending it due to the lack of authority to send any draft law to Parliament, including the budget because his government is now a caretaker government." He added, "The Parliament inquired about that and it appeared that the Prime Minister could send important bills to the parliament in the first week of the caretaker government, stressing that" the parliament in turn cannot read and discuss the budget or vote on it if it is sent during the current December.

Al-Saffar, that Iraq will have to adopt a (temporary budget) acted monthly salaries, and only operational budget, with the exception of the investment budget and exchange contracts and functional grades until voting on 2020 budget ".

While member of Parliament , Bahar Mahmoud indicated that "sending 2020 budget law from the government to parliament is legal according to the Federal Financial Administration Law No. 6 of 2019 even if it is a caretaker government."

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