In total, the Iraqi federal government will spend 1 trillion and 100 billion dinars monthly for the Kurdistan Region, including salaries and company costs. The Kurdistan Region, in return, will provide revenues totaling 270 billion dinars, consisting of:

• 230,000 barrels of oil per day

• 120 billion dinars from internal revenues

Initially, the federal government will cover salaries for May and June, which will be transferred through the “My Account” system.

This agreement is preliminary, not final. It is part of an understanding between Erbil and Baghdad to open the door for salary payments for Kurdistan Region employees.

Agreement Details:

• KRG will transfer 230,000 barrels of oil daily to SOMO (Iraq's oil marketing company) for one month.

• KRG keeps 52,000 barrels per day for local use.

• A joint committee from Erbil and Baghdad will later determine the quantity of oil allocated for local use.

• The estimated cost per barrel for production and transportation is $16.

Key Transfers:

KRG will provide:

• 230,000 barrels per day to SOMO

• 120 billion dinars per month from local revenue

Iraq will provide:

• $16 per barrel for oil production costs (to be paid to companies)

• 1 trillion and 30 billion dinars per month for salaries (but 60–65 billion dinars will be deducted monthly to repay debts and tax advances)

This means that about 958 billion dinars will be sent to the Kurdistan Region each month.

Oil Revenue Calculation:

• Oil price assumed: $65 per barrel

• Daily revenue: 230,000 × $65 = $14.95 million

• Monthly revenue: $14.95 million × 30 = $448.5 million, approximately 600 billion dinars

Oil cost (paid by Baghdad to companies):

• $16 × 230,000 barrels/day = $3.68 million/day

• Monthly: 9.9 million barrels × $16 = $158.4 million, approx. 150 billion dinars

Summary of Financial Flows:

KRG gives:

• 230,000 barrels of oil/day = approx. 600 billion dinars/month

• 120 billion dinars from local revenues

Iraq gives:

• 958 billion dinars in net salary payments

• 150 billion dinars to oil companies for production costs

Net benefit for Baghdad:

• Receives 720 billion dinars in total value

• Spends 1 trillion and 108 billion dinars

• Net deficit for Baghdad: about 400 billion dinars

According to KRG officials, this is a preliminary agreement and a step toward a broader long-term deal. The federal government will send salaries for a few months as a start, and both sides will continue negotiating a more comprehensive financial settlement.