The Finance Committee of the Iraqi Parliament has proposed changing oil contracts between the Kurdistan Regional Government (KRG) and oil companies, suggesting a shift from production-sharing contracts to profit-sharing agreements.

Kurdistan Region Prime Minister Masrour Barzani met with the committee's chairman and members in Erbil to discuss the proposal. Khalil Ghazi, a member of the Finance Committee, told Kurdistan 24 that the proposal aims to ensure fairer distribution of revenues from Kurdistan's oil production and exports, which have been suspended since March 25, 2023.

"The KRG has no objection to the proposal, but it requires acceptance from the oil companies, which have not yet made their decision," Ghazi said. He added that the primary goal of the visit was to increase non-oil revenues, such as customs and taxes, with both sides reaching a good understanding on several outstanding issues.

A statement from the KRG noted that Prime Minister Barzani emphasized the importance of resuming oil exports and enacting a federal oil and gas law during the discussions.

However, Nehro Ruandzi, Deputy Chairman of the Oil and Gas Committee in the Iraqi Parliament, voiced concerns over the proposal, stating that production-sharing contracts are more beneficial for the KRG and oil companies. "The proposal is not in the interest of the KRG," Ruandzi said citing concerns about potential corruption in profit-sharing contracts and their dependency on fluctuating oil prices.

He also expressed doubt that the oil and gas law would be enacted during Prime Minister Mohammed Shia al-Sudani's tenure, despite Sudani’s desire to see the law passed.