HEADLINES:

KRG says federal government should compensate it for oil production cuts from OPEC+ agreement: spokesperson

Citing financial struggles
2020-10-22

582 View

+ -

SULAIMANI — Spokesperson for the Kurdistan Regional Government (KRG) Jotiar Adil said on Thursday (October 22) that the KRG is ready to make additional cuts to its oil production, if the federal government compensates with funding to pay public servants and other loses that result from the cuts.

Adil said in a statement that the KRG is committed to implementing the OPEC+ agreement to cut oil production “fairly.”

“The Kurdistan Region has no disinclination about cutting output at a just rate agreed with the federal government and the federal government should provide the Kurdistan Region with financial entitlements for the money it loses from the cuts. Otherwise, the Region cannot govern its affairs and cannot afford its main expenditures, above all, the salaries of public sector employees,” he added.

Adil also called on Baghdad to take into consideration the financial crises experienced by the Kurdistan Region since 2014.

Iraq's State Organization for Marketing of Oil (SOMO) has said in the past that the KRG did not live up to its promises under the 2019 federal budget law to transfer 250,000 barrels of oil per day (bpd) to the federal government and that Iraq is committed to OPEC+ deal as a whole country.

(NRT Digital Media)