Draw Media

The International Chamber of Commerce in Paris issued a 277-page resolution on February 13, 2023 and on March 25, 2023 officially suspended oil exports from the Kurdistan Region.

According to the decision of the International Arbitration Chamber in Paris, the Kurdistan Regional Government is a constitutional and legal government within Iraq, but can not transport oil through pipelines, because the Kurdistan Region is not part of the IPT agreement, (the agreement was signed between Turkey and Iraq in 1973 on the oil pipeline).
Six months have passed since the Kurdistan Regional Government (KRG) and the Iraqi government reached an agreement, but oil exports have not yet resumed.

Suspension of oil and financial losses

Here we highlight the financial losses caused by the suspension of oil in the region during (25/3/2023 – 25/9/2023). in a way;

🔹 From (25/3/2023 – 25/9/2023) that is (6) months that oil exports have been suspended.
🔹 Based on Deloitte data before the suspension of oil exports, "an average of more than 12 million 461 thousand barrels of oil have been exported monthly."
🔹 That is, within (6) months, the oil exports would have reached more than (74 million 766 thousand) barrels of oil.
🔹 The average price of Brent oil during (25/3/2023 – 25/9/2023) was (82 dollars and 38 cents).
🔹 If the region had sold its oil at a discount of $15, as happened in the second and third quarters of 2022 then;
🔹 The average price of oil sold in the Kurdistan Region would have been (67 dollars and 38 cents).
🔹 The total value of oil exports was (5 billion 51 million 146 thousand) dollars.
• If (54%) of the revenue would go to the expenditure of the oil process, it would be equivalent to (2 billion 727 million 619 thousand) dollars.
• Accordingly, the amount of (2 billion 323 million 527 thousand) dollars at a rate of (46%) would be returned to the general treasury of the Kurdistan Regional Government.