PUK Supports Federal Budget Amendment to Enhance Oil Sector Transparency

Kurdistan 01:46 PM - 2025-01-29

Harem Kamal Agha, Leader of PUK bloc in Iraqi parliament.

The Iraqi parliament is set to vote on an amendment to the federal budget law, marking a significant step towards establishing a legal framework for cooperation between the federal government and the Kurdistan Regional Government (KRG) in the management of oil resources.

Support for Budget Amendment

Harem Kamal Agha, the Leader of the Patriotic Union of Kurdistan (PUK) bloc in the Iraqi parliament, told PUKMEDIA: "The PUK supports the amendment of the 2025 federal budget as per the bill provided by the federal government to the parliament." 

He continued, "This amendment will help implement the budget law, enhance transparency in the oil sector, and increase state revenues. We are keen to see this amendment legislated in the Iraqi parliament, rather than alternative bills."

Oil File Gains Legitimacy

Harem Kamal Agha further said: "We support the legislation of the government’s proposal regarding Article 12 of the budget law, which outlines the estimated dues for extracting oil from the Kurdistan Region." 

He added, "The amendment specifies that the cost of oil production from the Kurdistan Region will be set at 16 dollars per barrel, with the final amount to be determined within 60 days. This amendment will resolve ongoing discussions about the oil file, as it will gain legitimacy once the oil is exported by the State Organization for Marketing of Oil (SOMO)."

Finance Committee Approves Amendment

The parliamentary Finance Committee recently voted in favour of a proposal to amend the section of the federal general budget law related to the resumption of oil exports from the Kurdistan Region.

Dr. Narmin Marouf, a member of the PUK bloc in the Parliamentary Finance Committee, told PUKMEDIA: "The Finance Committee has voted during its meetings to amend Article (12/Second/C) of the Federal General Budget Law, which pertains to the resumption of oil exports from the Kurdistan Region. According to the amendment we voted on, the actual cost of producing and transporting oil from the Kurdistan Region is set at 16 dollars per barrel. This amount will be paid as an advance to the Kurdistan Region until the actual value of oil production and transportation from each field is determined separately by the relevant advisory bodies, within 60 days of the implementation of the Federal General Budget Law." 

On November 5, 2024, the Council of Ministers approved the proposal to amend paragraph c of the second section of Article 12 of the Triennial Budget Law No. 13 of 2023, setting the average actual cost of production and transportation of oil from the Kurdistan Region at 16 dollars per barrel.


PUKMEDIA