Latest news with #SOMO
Shafaq News
4 hours ago
- Business
- Shafaq News
KRG demands end to ‘Policy of Depriving' employees of salaries
Shafaq News – Erbil/Baghdad The Kurdistan Regional Government (KRG) urged Baghdad, on Wednesday, to stop what it called a 'policy of depriving' public employees of their salaries. In a statement after a cabinet meeting chaired by Prime Minister Masrour Barzani, the KRG asserted it had met all obligations, including resuming oil exports through SOMO and transferring revenue to the Federal Ministry of Finance, arguing that Baghdad had no reason to delay May and June salary payments. The KRG also emphasized that joint audits, employee records, and banking mechanisms were already in place, demanding the funds be released immediately and describing salaries as a 'constitutional, legal, and humanitarian right.' Tensions rose after Baghdad conditioned payments on the KRG's full oil delivery through SOMO and stricter oversight of non-oil revenues. The Kurdish government rejected those terms as exceeding earlier agreements. As a temporary measure, Prime Minister Mohammed Shia al-Sudani authorized a federal loan to cover May salaries, pending further resolution.
Rudaw Net
3 days ago
- Business
- Rudaw Net
Erbil, Baghdad edge toward oil export deal despite oil volume dispute: Sources
Also in Iraq Baghdad hotel venue for Arab Summit hit by fire Nearly 400 gazelles go missing in Diyala province reserve Iraqi Supreme Judicial Council approves top judge's retirement KRG delegation arrives in Baghdad amid efforts to resolve financial disputes A+ A- ERBIL, Kurdistan Region - Talks between Erbil and Baghdad on resuming Kurdish oil exports are progressing, though a key dispute over export volumes remains unresolved. While the federal government insists on 400,000 barrels per day (bpd), the Kurdistan Regional Government (KRG) has proposed an initial figure of 280,000 bpd, sources from both sides told Rudaw. Resolving the issue is critical, as it directly affects the salary crisis impacting over 1.2 million public sector employees in the Kurdistan Region. Informed sources in both Erbil and Baghdad confirmed to Rudaw that the latest round of meetings, held in Baghdad on Sunday, took place in a 'calmer atmosphere,' easing previous tensions. The KRG delegation, led by Kamal Mohammed, acting natural resources minister, met with federal officials to to iron out the details 'The [latest] talks were held in a calmer environment, breaking past tensions, and there has been progress on the oil issue,' a senior Baghdad source told Rudaw. Oil exports through the Iraq-Turkey pipeline have been halted since March 2023, following a ruling by a Paris-based arbitration court which found that Turkey violated a 1973 pipeline agreement by allowing Erbil to export oil independently. On Wednesday, Kurdistan Region Prime Minister Masrour Barzani said the halt in exports had cost the Region over $25 billion in lost revenues. In February, the Iraqi parliament amended the federal budget law, including a provision for a $16-per-barrel fee to cover production and transportation costs for international oil companies (IOCs) operating in the Kurdistan Region. The amendments also required both sides to jointly appoint an international consultancy within 60 days to assess these costs. If no consensus is reached, the federal cabinet will select the consultancy. The budget amendments were intended to facilitate the resumption of Kurdish oil exports. Rudaw has learned that a technical delegation from Baghdad visited Erbil last Wednesday to discuss the oil file and revenue-sharing mechanisms. Bridging the barrel gap A primary sticking point in the negotiations remains the volume of oil the KRG must hand over to Iraq's State Oil Marketing Organization (SOMO). The KRG has proposed transferring 280,000 bpd to SOMO as a first phase, reserving an additional 120,000 bpd for domestic consumption. Baghdad, however, insists on the full 400,000 bpd, with SOMO maintaining full control over exports. A SOMO official, speaking on condition of anonymity due to the sensitivity of the talks, told Rudaw on Sunday, 'The meetings are ongoing,' while noting that 'the matter is complex and significant. It is not just a SOMO issue - it involves Iraq as a whole and the [federal] oil ministry. SOMO is only the implementer." Iraq's 2023–2025 federal budget law, passed in June 2023, allocates 12.6 percent of the national budget to the Kurdistan Region - on the condition that it delivers 400,000 bpd. Tensions between Erbil and Baghdad escalated in late May when the federal finance ministry halted all transfers to the KRG, claiming that it exceeded its 12.67 percent share of the 2025 budget. The freeze has suspended salary payments for over 1.2 million KRG public employees, drawing strong criticism from Kurdish political parties, who say the move is unconstitutional. The move effectively suspended salaries for over 1.2 public sector employees in the Region and sparked sharp condemnation from Kurdish parties, who argue the suspension is politically motivated and unconstitutional. Sources in both Erbil and Baghdad underlined to Rudaw on Sunday that reaching a final agreement on oil volumes is essential to resume salary payments. Unpaid debts and scrutinizing revenues Beyond export volumes, another major obstacle is the financial entitlements and outstanding debts owed to IOCs. A KRG source told Rudaw that these companies are seeking two guarantees: a fixed payment of $16 per barrel fee to cover production and transportation costs, as stipulated in the budget law, and the repayment of nearly $1 billion of accumulated debts the IOCs say they are owed. Meanwhile, Baghdad is seeking greater oversight of the KRG's non-oil revenues. In a letter sent in late May, Iraqi Finance Minister Taif Sami cited the KRG's failure to remit its full share of revenues as justification for withholding budget transfers. During their visit to Erbil on Thursday, Baghdad's technical delegations proposed sending federal teams to monitor KRG-controlled revenue sources, such as customs and border crossings, to verify income in coordination with federal authorities. This demand aligns with Iraq's Federal Financial Management Law No. 6 of 2019, which mandates that 50 percent of federal customs and tax revenues be distributed to provinces - including the Kurdistan Region - with the remaining 50 percent going to the federal government. Hevidar Shaaban, a financial advisor based in Erbil, noted to Rudaw on Sunday that both the KRG and the federal government representatives have reportedly reached a preliminary agreement on three main points: the KRG committing to transfer 50 percent of its non-oil revenues to the federal government, customs operations will be integrated with federal systems, and in return, the federal government will be obliged to resume salary payments to KRG employees. Hastyar Qadir contributed to this article.
Iraqi News
6 days ago
- Business
- Iraqi News
Iraq exports over 500 million barrels in 5 months
Baghdad ( – Iraq's oil exports during the first five months of 2025 surpassed 500 million barrels. Iraq's total oil exports in the first five months of 2025 were 507,699,760 barrels, or 101,539,932 barrels per month, according to figures provided by the State Oil Marketing Organization (SOMO). Oil exported from oil fields in Basra and central Iraq, through southern Iraqi ports, reached 492,543,872 barrels, while the oil exported from the Qayyarah oil field in the northern Iraqi province of Nineveh totaled 4,745,590 barrels. SOMO's statistics indicated that oil exports from Kirkuk to neighboring Jordan during the first five months of 2025 reached 1,649,316 barrels. The country's financial revenues generated from oil exports between March and May reached $20.81 billion. The majority of Iraq's oil exports go to China and India, followed by US companies. Iraqi oil shipments fluctuated slightly in the first quarter of 2025, as the country stuck to previous OPEC+ production limits, despite a rise in export volumes during the first two months of the year. Iraqi oil shipments declined dramatically around the end of 2024, notably in December and November, as a result of Baghdad's commitment to voluntary reductions under the OPEC+ agreement. Experts anticipate Iraq's oil exports will gradually increase in the next months, with the OPEC+ group of eight members announcing the voluntary return of restricted supplies in April 2025.
Zawya
20-06-2025
- Business
- Zawya
Asian refiners seek more Mideast oil after spot premiums jump on Israel-Iran conflict
SINGAPORE/NEW DELHI - Asian refiners have requested more term crude oil supplies loading in August and September from producers in the Middle East after spot premiums jumped, six trade sources said on Friday. Spot premiums for Middle East benchmarks rose above $3 a barrel on Thursday, the highest levels in four months, on fears of supply disruption after fighting broke out between Israel and Iran last week. "We are receiving additional interest from our customers in Asia," a source at a Middle East crude supplier said, adding that the requests are for cargoes loading in August and September. A source at an Asian refiner said the official selling prices (OSPs) for Middle East crude are lower than spot levels, making it more economical to seek more term supplies. Two sources at Indian refineries said they will be receiving more July-loading term crude supply from Middle East suppliers as they anticipate lower supplies from Russia. The sources declined to be named as they are not authorised to speak to the media. Producers such as Saudi Aramco, Abu Dhabi National Oil Co (ADNOC) and Iraq's SOMO typically notify term customers on their allotted volumes a month before cargoes are due to load. It is not immediately clear if the producers will supply more oil, three sources said, although one of them pointed to rising output from the bloc. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, are unwinding supply cuts, planning to increase output by 1.37 million barrels per day between April and July.
Reuters
20-06-2025
- Business
- Reuters
Asian refiners seek more Mideast oil after spot premiums jump on Israel-Iran conflict
SINGAPORE/NEW DELHI, June 20 (Reuters) - Asian refiners have requested more term crude oil supplies loading in August and September from producers in the Middle East after spot premiums jumped, six trade sources said on Friday. Spot premiums for Middle East benchmarks rose above $3 a barrel on Thursday, the highest levels in four months, on fears of supply disruption after fighting broke out between Israel and Iranlast week. "We are receiving additional interest from our customers in Asia," a source at a Middle East crude supplier said, adding that the requests are for cargoes loading in August and September. A source at an Asian refiner said the official selling prices (OSPs) for Middle East crude are lower than spot levels, making it more economical to seek more term supplies. Two sources at Indian refineries said they will be receiving more July-loading term crude supply from Middle East suppliers as they anticipate lower supplies from Russia. The sources declined to be named as they are not authorised to speak to the media. Producers such as Saudi Aramco ( opens new tab, Abu Dhabi National Oil Co (ADNOC) and Iraq's SOMO typically notify term customers on their allotted volumes a month before cargoes are due to load. It is not immediately clear if the producers will supply more oil, three sources said, although one of them pointed to rising output from the bloc. The Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, are unwinding supply cuts, planning to increase output by 1.37 million barrels per day between April and July.
