The Iraqi Finance Ministry has recently cited the Kurdistan Regional Government’s (KRG) 2024 revenue as part of its justification for suspending salary transfers to the region for the remainder of 2025. The ministry argues that the KRG’s total revenue, particularly oil income, has caused its actual budget intake to surpass the 12.75% share allocated in the federal budget (excluding sovereign expenditures).

The revenue figures cited by the ministry are based on a joint federal-KRG financial audit and are slightly higher than the data reported by the Roonbeen Organisation for Transparency in the Kurdistan Region’s oil sector. However, it’s important to note that only about half of this revenue actually reached the KRG; the remainder went to international oil companies operating in the region. The breakdown is as follows:

In 2024, oil fields in the Kurdistan Region sold an average of 310,000 to 320,000 barrels per day, generating a total revenue of 4.61 trillion Iraqi dinars. Of this, 2.535 trillion dinars went to the KRG, while 2.074 trillion dinars were paid to the operating oil companies.

Oil Production and Sales Post-Pipeline Suspension

Although pipeline exports were halted on March 25, 2023, oil production in the Kurdistan Region has continued. Part of the output is consumed domestically, while the rest is transported by tanker trucks to Turkey and Iran.

Currently, oil is being extracted from 14 active fields, with daily sales holding steady at around 310,000 to 320,000 barrels. According to analysis by Dreu, a total of 111.6 million barrels were sold throughout 2024.

In a March 23, 2024 interview, Finance Minister Awat Sheikh Janab stated: “The average price per barrel is $31.3. Under current arrangements, 55% of the revenue goes to the government and 45% to the companies, as they do not cover transportation costs and sell directly.”

However, our field data suggests that in some cases the government’s share exceeded that, reaching up to 64%. Based on the average price of $31.3 per barrel, the total revenue from 111.6 million barrels amounted to $3.493 billion (approximately 4.61 trillion dinars).

From this, the government received 55%, equivalent to $1.921 billion (2.535 trillion dinars), while companies took 45%, or $1.571 billion (2.074 trillion dinars).

Use of Government Oil Revenue

The government’s share—$1.921 billion (2.535 trillion dinars)—did not go to the Ministry of Finance’s treasury. Instead, it was managed directly by the Council of Ministers under Prime Minister Masrour Barzani.

A portion of this revenue, totalling 48 billion dinars monthly, is allocated to several key expenditures, including:

• $22 million per month for electricity and gas supply fees (paid to KAR Group and Dana Gas)
• Regular payments toward outstanding debts owed to oil companies
• Fuel subsidies for domestic consumption
• Internal fuel distribution and logistics costs

The KRG’s monthly net revenue was approximately 211.25 billion dinars. While 48 billion dinars were clearly allocated to the specified sectors, there is no transparency regarding the remaining 163.25 billion dinars per month, amounting to a total of 1.959 trillion dinars in 2024.