“The stopping of pumping Iraqi oil extracted from the fields of the Kurdistan Region of Iraq (KRG) is undoubtedly a loss for Iraq, and at least it is a missed benefit that could support development plans in the provinces of the Kurdistan Region of Iraq and strengthen the overall Iraqi economy,” Iraqi Prime Minister Mohammad Shia al-Sudani said in an exclusive interview with Anadolu.

Touching upon Iraqi oil transfer to Turkey, which has been suspended for over a year over Ankara's violation of mutual agreements as it unilaterally purchased oil from Kurdistan, he said that Baghdad had "initiated acceptable settlements and legal solutions after a thorough legal study," but "the matter remains bound by legal commitments."

“The Federal Budget Law requires that the cost of producing one barrel of oil in all fields be within the national average production cost, which is about $8 per barrel, according to the Federal Ministry of Oil,” he explained, further stating that KRG calculates the production cost at about $26 per barrel “within the contracts signed with the operating oil companies.”

“We have proposed either to amend the budget law or to amend the agreements and contracts with these companies. From this perspective, the companies stopped production, not because of a ban from the federal government, but waiting for a solution,” he said.

“The companies refused to amend the contracts, while the regional government agreed. For these reasons, more work is needed to find a legal solution that prioritizes ensuring the rights of Iraq and its people to their wealth."

He concluded on the issue by saying: “As for transporting Basra's oil through Turkish ports, the matter is under study, and determining the economic feasibility is paramount before anything else.”

Positioning in the gas sector

Addressing his country's energy ambitions, he mentioned that “harnessing gas is a strategic choice for Iraq” and that their national resources “must be optimally employed to serve our people and development plans.” But he warned that “the ongoing practice of gas flaring must stop, first, because of the waste of this resource that could be utilized, and secondly because of the environmental impacts.”

“We have announced a special licensing round for harnessing gas fields, and we plan for Iraq to be self-sufficient in domestic gas production within 3 years," the premier revealed, stating that Iraq is progressing to become a significant element in the gas market within 5 years.

"We will achieve self-sufficiency in this resource for electricity production,” he said, adding that “having a technological base for gas harnessing is simultaneously a foundation for a broader range of petrochemical industries, which is our goal.”

Al-Sudani pointed out that Iraq is open to “any reputable and specialized company" wishing to participate in the gas sector, "just as we welcome regional companies because they will broaden the base of cooperation in other areas.”

“It is important to understand that harnessing gas means generating additional resources for development in Iraq, which can be used in various promising economic fields, and these areas will be open for participation by Turkish companies and other friendly nations,” he said.