Iraqi Kurdistan receives Iraq budget payment

04 March 2015

Erbil receives $208m after Kirkuk crude exports ramped up February, according to Iraq Oil Report

The Kurdistan Regional Government (KRG) has received its first budget payment of 2015 from Iraq’s central government, according to Iraq-based media.

Baghdad and Erbil reached a deal in November 2014 where the KRG committed to exporting oil though Iraq’s State Oil Marketing Organisation (Somo) in exchange for its 17 per cent share of the national budget.

Baghdad has been withholding the KRG’s share of the national budget since early 2014.

Iraq Oil Report, citing a spokesman from the KRG Finance Ministry, reported that the KRG received ID250bn ($208m), which is being used to make overdue payments to public sector employees.

In December, the KRG significantly ramped up exports from Iraq’s northern Kirkuk field via a pipeline through the Kurdistan region of northern Iran into Turkey.

According to the Iraq Oil Ministry, exports through this route doubled to 304,000 b/d in February, exceeding the Kirkuk export volumes set out in the November agreement.

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