Sign In / Up

Add contribution as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Comment as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Login

Not a member Register   Forgot Password
or connect using
 

Email

 

Rudaw

Business

Kurdistan Region reduces debts to foreign oil companies by $1 billion

By Rudaw 8/5/2017
An oil facility in the Kurdistan Region. Photo: Rudaw
An oil facility in the Kurdistan Region. Photo: Rudaw

ERBIL, Kurdistan Region - The Kurdistan Region’s debts owed to oil companies have decreased by 25 percent as the region has paid back an estimated $1 billion to oil companies over the past eight months.


Dr. Aras Khoshnaw head of the Kurdistan Strategic Investigation and Information Center told Rudaw that loans the Kurdistan Regional Government had borrowed from the oil companies since 2014 have been reduced from $4 billion to just $3 billion as the KRG has started paying back its debts over the past eight months.


Khoshnaw added the process of paying the companies their gross payments has encouraged the companies who had oil agreements with the KRG to return and resume their work in oil fields.

He added, the companies have asked the KRG to increase its oil export capabilities as they have increased their productions.

This could be done through two ways, he noted, either through the opening of another route for oil exports, or by adding extra refineries. 

According information available to Khoshnaw, the Iraqi government owes the oil companies $70 billion.

The Iraqi government during Nouri al-Maliki premiership cut the Kurdistan Region’s national budget share in early 2014, a move which forced the KRG to borrow large amounts of money from oil companies or delay their payments in a bid to offset its budget deficit to meet the region’s internal needs, notably the salaries of civil servants.

Additionally, lower world oil prices, the influx of more than 1.8 million refugees and IDPs, and increased military expenses because of the war with ISIS which began in the summer of 2014 have been economic challenges for the KRG.


The KRG signed two agreements in early October and November last year with two international financial institutions — Deloitte, and Ernst and Young — to audit the region’s oil and gas sector.


Be Part of Your Rudaw!

Share your stories, photos and videos with Rudaw, and quite possibly the world.

What You Say

eclipeseden | 9/25/2017 11:57:23 AM
Oil is the curse of Middle East!!! Best thing Turkey and other oppressive countries in Middle East is to do for newly Kurdistan is to block...
Sherwani | 9/25/2017 3:25:23 PM
Turkey will forever discourage the Kurds from gaining independency, however, at some points in life, Enough is ENOUGH and we (Us Kurds) will take our...
Turkey's Erdogan threatens to shut off oil pipeline, to close border
| 20 hours ago | (3)
Bob | 9/25/2017 3:14:52 PM
Never trust Turks, much less Erdogan. NEVER.
Sully | 9/25/2017 3:23:17 PM
The fascist government of Turkey and its dispicable behavior only proves how anti democratic and totalitarian it is! Turkeys unfounded fear and...
Turkey halts Rudaw broadcast on Turksat satellites
| 16 hours ago | (2)
Penina Sarah | 9/25/2017 3:14:37 PM
I do not dislike these comments. I agree with them. The history of western and US betrayal of Kurdish interests is disgraceful with the exception...
Penina Sarah | 9/25/2017 3:14:38 PM
I do not dislike these comments. I agree with them. The history of western and US betrayal of Kurdish interests is disgraceful with the exception...
US opposes elections in Syria's Kurdish enclaves
| 19/9/2017 | (9)
Jay | 9/25/2017 11:38:36 AM
Haidar is a barking dog, this man is so incompetent that he can not run a school, is that really you Haidar or some one is pushing you.
Murf | 9/25/2017 2:36:50 PM
Well it looks like the Shia are going to make this as ugly as possible. You would think after getting kick hard in 4 separate wars they would have...
Baghdad demands control over borders, oil on eve of referendum
| yesterday at 10:10 | (13)
0.422 seconds