Baghdad: Iraq's government announced on Thursday reaching an agreement with the Kurdistan region on oil exports from the region and salaries of its staff. It is a move aiming to end the crisis of salaries and enhance federal control over oil resources, Iraq's government said in a statement.
According to Kuwait News Agency, under the deal, Kurdistan's government will immediately hand over its oil output to Iraq's State Organization for Marketing of Oil (SOMO) for export. In exchange, Kurdistan will receive a loan estimated at USD 16 (in kind or cash) for every delivered barrel to the region. The delivered quantity shall not be less than 230,000 barrels per day, with possible additions in the future.
The current output is about 280,000 barrels per day, with 50,000 of them allocated to local consumption, according to the region's report. Regarding non-oil revenue, the two sides agreed that the region's government will deliver USD 92 million to Iraq's ministry of finance for May, which will be settled later.