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The Kurdistan Region makes $38 and Iraq makes $82 in a barrel of oil

2023-01-31 08:24:25

Oil values in Iraq and the Kurdistan Region in 2022

🔹 The average cost of a barrel of oil in the Kurdistan Region was more than (49) dollars and in Iraq (13.38) dollars, in other words (56%) of the oil revenue in Kurdistan went to the cost of the production process.

🔹 If the Kurdistan Region had sold oil at the price and cost of SOMO, then instead of $38.6, would have $82.16 left. Which means the KRG’s total net revenue would be $11 billion instead of $5 billion.

Comparison of oil values in Kurdistan Region and Iraq in (2022)

According to the analyses, the Iraqi government in 2022, through the Iraqi Oil Marketing Company (SOMO) sold oil for $95.54 per barrel on average. the total value of oil sold was (115 billion 466 million 245 thousand) dollars.

According to Duraid Abdullah, researcher and expert; “Foreign oil companies have 20% share out of 70% of Iraq's oil exports."

According to this information last year, Iraq have spent $16.1 billion for the oil production process. In other words, an average of $82.16 per barrel of oil sold returned to the Iraqi treasury and $13.38 was spent per barrel.

But this is not true for the Kurdistan Region! Because according to analyses, the Kurdistan Regional Government in 2022, through the Kurdistan oil pipeline, on average sold oil for $87.58 per barrel.

The value of oil sold was (12 billion 784 million 353 thousand 956) dollars, but the amount of (5 billion 625 million 115 thousand 741) dollars returned to the general treasury of the Kurdistan Regional Government.

Accordingly, the return rate of oil revenue was 44% and 56% went to the expenditure of the oil process. In other words, only $38.65 per barrel of oil sold in the region returned to the general treasury and $49.2 per barrel was spent.

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