The Kurdistan Region and Baghdad have reached a preliminary agreement on salaries, the budget, and oil. Today, the Iraqi Council of Ministers for Economic Affairs will prepare the final report on the agreement. Baghdad is requesting the delivery of 280,000 barrels per day to SOMO and a monthly transfer of 150 billion dinars in internal revenues. The Kurdistan Region, in turn, wants Baghdad to cover salaries, operating expenses, and investment spending for the Region, with $16 allocated per barrel for costs and 125,000 barrels designated for local use.

The Iraqi Economic Affairs Council, chaired by Dr. Fuad Hussein and including the Ministers of Finance, Planning, and Oil, will finalize the agreement. A final decision will be made at the Council of Ministers' meeting.

According to the information:

• Baghdad demands around 150 billion dinars per month in internal revenue and the delivery of 280,000 barrels of oil daily via SOMO.

• In return, Baghdad would cover the Region's public sector salaries, operational costs, and oil company expenditures.

The Kurdistan Region’s demands include:

• Baghdad to send salaries of the Region’s public servants.

• Coverage of operational and investment costs.

• Salaries to be paid from actual expenses.

• Oil company debts to be paid.

• The Region to provide 280,000 barrels to SOMO and 115,000 barrels for local use.

• $16 to be spent per barrel.

Oil companies also have several demands:

• No changes made to their contracts.

• Their debts amounting to about $1 billion should be paid.

• Revenues from their projects in the oil fields to be settled.

According to follow-ups:

• The Iraqi government requests 50% of total internal revenues, estimated at 300 billion dinars, which means 150 billion dinars monthly to be delivered to the Ministry of Finance.

• The Kurdistan Region is to deliver 280,000 barrels of oil daily via SOMO, with the revenue returned to Iraq’s Ministry of Finance.

• In return, Baghdad will initially pay the May salaries this week as a goodwill gesture and, following a complete agreement, will cover the June salaries as well.

• For each barrel, Baghdad will pay $16 to the producing companies.

• With the daily delivery of 280,000 barrels to SOMO and the international market price of around $65 per barrel, the daily revenue would be $18.2 million, and the monthly (8.4 million barrels) revenue would reach $546 million.

• Of this, $16 per barrel (totaling $134 million monthly) will go to the companies, meaning the Iraqi government retains $412 million.

• If the Region sells the 280,000 barrels daily at its local price of $33 per barrel, it would generate $277 million monthly—$269 million less than the $546 million possible through SOMO.