A tripartite agreement between the Kurdistan Regional Government (KRG) Ministry of Natural Resources, the Iraqi Ministry of Oil, and oil companies on oil exports is scheduled to be signed today. Vian Sabri, head of the Kurdistan Democratic Party (KDP) parliamentary bloc, told Channel8 that the agreement will be reached between the three parties today.

Channel8 was the first media outlet in the Kurdistan Region and Iraq to reveal this issue and exclusively provided details throughout the course of talks between Erbil and Baghdad to find a solution regarding oil, revenue shares, and the financial entitlements of Kurdistan Region public sector employees.

Agreement reached earlier this month

On September 19, Channel8 reported that a tripartite deal was to be reached between the Federal Ministry of Oil, the Ministry of Natural Resources, and the oil-producing companies. A day later, the KRG Prime Minister confirmed such an agreement.

Key terms of the deal

Under the terms of the agreement, 50,000 barrels per day will be allocated for domestic consumption within the Kurdistan Region, while the remaining volume will be handed over to SOMO for export.

Salary and revenue issues

By reaching an actual agreement on oil exports, a major obstacle to the payment of salaries will be resolved. Only an agreement remains on the share of the federal treasury in the revenues of the Kurdistan Region, which has taken positive steps, and the Iraqi State Council has sent its comments to the Council of Ministers.

Previous understanding in July

In July, the Kurdistan Regional Government and the federal government reached an agreement under which, in exchange for the remittance of salaries by Baghdad, oil exports would resume. The KRG would also pay the federal treasury’s share of revenues to Baghdad on a monthly basis.

Non-oil revenues linked to oil deal

Senior Iraqi government sources indicate that if an oil deal is reached, the issue of non-oil revenues will be easily resolved.

Speaking to Channel8 yesterday, Karwan Yarwais, a member of the Iraqi parliament, noted: “If the tripartite agreement between Erbil, Baghdad, and the companies on the export of oil from the Kurdistan Region is signed by Tuesday, the problem of non-oil revenues will be easy to solve, because the main problem is oil.”