Kar Group has suspended oil production for Iraq due to non-payment of the production costs, which supplied Iraq by 85,000 barrels of oil on a daily basis. 
In the past five months, 11 million barrels of oil were produced by Kar Group from its refineries, at the same time it refined oil and gasoline for Nineveh province.

The total amount of oil produced during this period is worth more than (260) million dollars and it has not been spent by the Iraqi government.
According to Darw Media, it has been for two weeks since Kar Group has suspended oil production for Iraq. Kar has produced about 11 million barrels of oil since the end of June but has not received the wages.
"On June 25, the Iraqi Oil Ministry asked us to start producing oil from 50,000 to 140,000 barrels," Kamal Mohammed, the Kurdistan Regional Government's minister of natural resources, said in a news conference. “We handed over the oil to the Kar refinery, which works for Iraq. We are now supplying an average of 85,000 barrels of oil per day, but not a dollar has been spent on the oil production since then.” He added.
The Iraqi governments excuse for not spending Kar Group financial entitlement is that they only spend $6 per barrel for production and transportation.
According to the minister of natural resources the disputes over the price of oil production and transportation between the Kurdistan Region and Baghdad are because of the contracts. As he mentioned, “the Kurdistan Region contracts are different from those of Iraq, because Iraq has its own national oil production company. but we do it through the international companies.
 On August 24, we met with the companies and told them that the fixed price for oil production and transportation by the Iraqi Ministry of Oil is $6 which has been approved in the Iraqi budget. "The companies all responded officially and said we could not continue producing oil at that $6."
According to the report of the Economic Office of the Federal Ministry of Oil, the cost of production and transportation of oil per barrel is (8 thousand 960) dinars, which is (6.9) dollars.
The Ministry of Natural Resources of the Kurdistan Region of Iraq (KRG) has determined the average of oil production expenditure of (32.91) dollars, as follows:
• Amount (24,32) dollars, to produce a barrel of oil
• The amount of (6.9) dollars, to transport a barrel of oil
According to the price that the Ministry of Natural Resources believes that Baghdad must spend a barrel of oil production for its companies, which is (24) dollars
The price of the oil delivered to Baghdadi in the past five months was $264 million for 11 million barrels of oil. However, according to the price set by the Iraqi Oil Ministry which is (6) dollars per barrel, the total amount of money that has to be spend on the 11 million barrels is 66 million dollars.