A Kurdistan Democratic Party (KDP) member of the Iraqi Parliament, Sipan Sherwani, revealed details regarding recent economic agreements signed in Washington, while simultaneously warning of a critical shortfall in refined petroleum products allocated to the Kurdistan Region for domestic consumption.

Strategic Energy Agreements with American Firms

Speaking to Channel8, Sherwani confirmed that Iraqi Prime Minister Ali al-Zaidi finalized several strategic contracts with major U.S. corporations during his official visit to Washington. The signed frameworks cover upstream oil exploration, midstream petroleum transport, and refining capacity, measures designed to strengthen national revenues and support long-term economic stability.

Prior to the delegation's arrival, envoy Tom Barrack conveyed a message from U.S. President Donald Trump urging the Iraqi federal government to guarantee security and commercial assurances for American enterprises, particularly those operating within the Kurdistan Region. Sherwani noted that two of the U.S. energy companies signing agreements had previously established operational presence in the region's natural gas sector.

Fuel Disparity and Budget Allocations

Addressing the ongoing fuel shortage in the Kurdistan Region, Sherwani highlighted a widening gap between federal oil allocations and regional demand. Under current federal budget amendments, the Kurdistan Region is assigned 50,000 barrels of oil per day for domestic refining and consumption, compared to 1,000,000 barrels per day designated for Iraq's remaining 15 governorates.

Sherwani stated that because the Kurdistan Region accounts for approximately 14 percent of the nation's total population, an equitable distribution based on federal figures would require 140,000 barrels per day to fully resolve local fuel deficits.

Proposed Legislative and Federal Solutions

To address the regional energy shortfall, the KDP lawmaker outlined three potential regulatory and policy pathways:

• Direct Federal Transfers: Requesting the federal Ministry of Oil to immediately ship refined fuel products to northern governorates to alleviate immediate shortages.
• Legislative Integration: Securing fixed regional supply quotas within the upcoming national Oil and Gas Law.
• Budgetary Revisions: Amending the Federal General Budget Law to adjust the daily crude-for-domestic-use ratio to mirror population demographics.