Iraq’s North Oil Company says around 200,000 barrels of KRG oil are currently being exported per day, a figure confirmed by the KRG’s Natural Resources Minister, who added that the Region’s current production capacity stands at 270,000 barrels per day.

Details: Since exports resumed on 27 September, approximately 10 million barrels from the Kurdistan Region have been shipped to Turkey’s Ceyhan port. The company added that KRG crude is now split between the Turkish and European markets.

Separately, Kirkuk oil production stands at around 340,000 barrels per day. However, North Oil Company director Amer Khalil confirmed there are currently no plans to export Kirkuk crude through Turkey’s pipeline.

On Kirkuk oil, Amer Khalil said production stands at around 340,000 barrels per day. As for the prospect of exporting via Turkey’s pipeline, he noted that there are currently no plans to do so.

On the fiscal front, approximately 52% of the KRG’s monthly salary bill is now covered by revenues generated from the Region’s own oil and non-oil sources. According to Amanj Rahim, Secretary of the KRG Council of Ministers, the 200,000 barrels per day sold by SOMO generate around 545 billion dinars per month at today’s Brent price of $64.79 per barrel. In standard government budgetary accounting, this represents the gross revenue – the full market value before costs. With this calculation, the overall KRG-related revenue accounts for approximately 69% of the total KRG salary expenses that the Iraqi government sends to the KRG.

However, for a clearer picture of the actual fiscal burden-sharing, production and transportation costs must be factored in. Under the agreement with oil companies, these costs of $16 per barrel are deducted upfront and paid to the companies in oil before any revenue reaches government accounts. This means the net revenue available to cover salaries is $48.79 per barrel.

At the current exchange rate of 1,310 dinars per dollar, the 200,000 barrels per day generate approximately 383.5 billion dinars per month in net oil revenue – the actual cash available to government. Combined with roughly 120 billion dinars from non-oil revenues, total revenue generated from the KRG’s oil and non-oil sources reaches 503.5 billion dinars monthly, all deposited with the Federal Ministry of Finance.

With the KRG’s total monthly salary expenditure at roughly 960 billion dinars, the federal government’s net contribution is approximately 456.5 billion dinars, or about 48% of the salary bill. The remaining 52% is effectively covered by the KRG’s own revenues. However, if gross oil revenue (before production costs) is considered, the KRG’s contribution accounts for approximately 69% of its salary bill.