Kurdistan Regional Government pledges to abide by PM al-Zaidi's oil decisions

Kamal Mohammed, the Minister of Natural Resources for the Kurdistan Regional Government, has announced that the ministry will abide by any decision made by Iraqi Prime Minister Ali Faleh al-Zaidi regarding the oil sector. The ministry is currently awaiting recommendations from the parliamentary oil and gas committee to determine the next steps.

Oil production in the Kurdistan region has resumed, with most companies and fields returning to operation. However, the Sarsang oil field remains offline following damage from drone strikes. Current production levels are estimated between 220,000 and 230,000 barrels per day, a portion of which is used for local consumption.

Addressing fuel shortages, Mohammed noted that while gasoline issues have largely improved, the federal government must pay the Kurdistan region its rightful share to resolve the problem entirely. He highlighted a significant disparity in refining costs, noting that the federal government estimates costs at approximately $4 per barrel, whereas the Kurdistan regional government faces costs of roughly $16 per barrel. Additionally, the minister emphasized the need to increase local refining capacity, as current output is 50,000 barrels per day against a local demand of 140,000 barrels per day.