KRG rejects oil smuggling allegations, disputes production figures
Shafaq News- Erbil
The Kurdistan Regional Government's (KRG) Ministry of Natural Resources on Thursday rejected allegations by former Iraqi lawmaker Ala Talabani concerning the Region's oil production, exports and international oil companies, saying the claims were misleading and unsupported by evidence.
In a statement, the ministry disputed Talabani's reported claim that the Kurdistan Region produces 650,000 barrels of oil per day (bpd), citing an assessment by international energy consultancy Wood Mackenzie that puts current output at approximately 255,000 bpd.
The ministry said Wood Mackenzie had been contracted by Iraq's federal Oil Ministry under the federal budget law to assess production volumes and the costs of extracting and transporting oil from the Kurdistan Region.
According to the ministry, the consultancy projects that production could reach 308,000 bpd by 2027 under favorable conditions, provided international oil companies receive their contractual payments and sufficient security is maintained to support drilling and field development.
The ministry also rejected allegations of oil smuggling, saying 42 representatives of the federal Oil Ministry oversee the Region's exports to Turkiye.
It said the export process is administered by Iraq's North Oil Company (NOC) in coordination with the State Oil Marketing Organization (SOMO), arguing that any allegations of smuggling should be supported by specific evidence.
The ministry called on the federal Oil Ministry to clarify the export arrangements and defend the oversight mechanisms administered by its own personnel.
Regarding oil revenues, the ministry said all proceeds from exports marketed through SOMO are transferred to the federal Finance Ministry's treasury. It argued that allegations of financial irregularities should be directed to the institutions responsible for managing and overseeing those revenues.
The statement also rejected Talabani's allegations concerning the ownership of international oil companies operating in the Kurdistan Region. The ministry said the companies are internationally recognized businesses subject to financial disclosure, auditing and anti-corruption requirements, and that their contracts have been upheld through Iraqi judicial proceedings.
It described allegations that the companies belong to ruling families in the Kurdistan Region as serious and unsupported, warning that such accusations could undermine investor confidence in Iraq's oil and gas sector.
The ministry further said some of the companies hold contracts with the federal Oil Ministry and operate elsewhere in Iraq.
Addressing cooperation with Baghdad, the ministry said the KRG had allowed federal Oil Ministry officials to inspect all oilfields in the Region, while independent international experts had been granted access to production facilities and export meters.
It warned that unsubstantiated allegations could undermine recent agreements between Baghdad and Erbil and damage international investor confidence.
