Iraqi Prime Minister Muhammad Shiaa Al-Sudani recently announced that his government is exploring the possibility of transporting Basra oil through Turkish ports to determine its economic feasibility. In an interview with the official Turkish Anatolia Agency, Al-Sudani expressed concern over the halt in the pumping of Iraqi oil extracted from the Kurdistan region, citing it as a loss for Iraq’s economic development.
Al-Sudani emphasized the need for a thorough legal study to address the issue, as the Federal General Budget Law requires the cost of producing one barrel of oil to be calculated within the national average of production costs. This has led to disagreements between the Federal Ministry of Oil and the Ministry of Natural Resources in the Kurdistan Regional Government, as production costs differ significantly.
Oil companies have stopped production, awaiting a resolution to the contractual disputes. Al-Sudani stressed the importance of finding a legal solution that safeguards Iraq’s rights to its wealth and ensures fair agreements with oil companies operating in the region. Currently, Iraq’s oil production stands at approximately 4 million barrels per day, while the country imports significant quantities of gas oil, gasoline, and other oil derivatives. Al-Sudani has expressed a vision for self-sufficiency in oil production to reduce imports and save billions of dollars for the country. The government’s focus is on resolving these disputes surrounding oil production and transportation to maximize its benefits for Iraq’s economy and people.
