Parliament Passes Budget, KRG Unhappy with Oil Revenues

By John Lee.

The Iraqi parliament passed the 2013 budget of the 138 trillion Iraqi dinars ($118.5 billion) on Thursday, allocating to Kurdistan just a fraction of the oil revenue the region requested, reports Wall Street Journal.

Ibrahim al-Mutlaq, a member of the parliamentary finance committee, said the budget allocates 750 billion Iraqi dinars ($644 million) for oil companies operating in the semi-autonomous region, which include majors such as Exxon Mobil, Gazprom Neft and Chevron; the Kurdish government had asked for $3.5 billion, including outstanding payments covering all exports between 2010 and 2013.

The budget decision adds to existing tensions between the Kurdish region and Baghdad over oil exploration rights, trade with Turkey and the redevelopment of oil fields in a disputed territory.

Kurdish lawmakers boycotted the session which led to the passing of the budget, Mr. al-Mutlaq said.

Jaber al-Jaberi, an Iraqiya MP among those who boycotted the session, said he expects the Kurds to go to the federal court to disrupt the budget.

(Sources: WSJ, Reuters)

6 Responses to Parliament Passes Budget, KRG Unhappy with Oil Revenues

  1. Lorenzo 9th March 2013 at 12:10 #

    Well when the pipeline is operational then Baghdad will not have any leverage at all against the KRG. And lately, it has been made some statements that all kurdish oil will go through KRG and not SOMO.

    Somebody is very anxious to put things at a critical point without making public what kind of political agenda they have.

    At the very end, it will result in Baghdad changing all their T&C's with IOC's to something which looks like the KRG. The IOC's operating all over Iraq and Baghdad losing centralized power and the governorates winning significant economical independence.

    In such scenario it will be difficult to steal 80 billion USD from the shrinking cental economy and to take it from the decentralized governorates. Of course, corruption will not end by that but it will limit the centralized corruption and perhaps local corruption will increase.

    Education, education and more education. All money from iraqui oil belong to all iraquis and not only to a fraction of its population

  2. Stew 9th March 2013 at 18:46 #

    Budget passed, no RV. How can this be?

  3. Kent 14th March 2013 at 14:14 #

    Who or what is holding the RV up?

  4. Iraq Investor 14th March 2013 at 15:16 #

    What's an RV? A recreational vehicle??

  5. Ian McIntosh 15th March 2013 at 17:42 #

    Please note that the companies mentioned are in the exploration phase and are not producing, therefore they are not owed anything in the way of oil revenue by the KRG yet.