The oil values in Iraq and the Kurdistan Region in 2022
Based on Deloitte reports, compared to the data of the Iraqi Ministry of Oil and the measures of SOMO, the value of oil in (Iraq and the Kurdistan Region) and the (KRG oil through SOMO) in 2022 is as follows;
🔹 The average cost of a barrel of oil in the Kurdistan Region was more than (45.93) dollars and in Iraq (13.38) dollars, in other words (54%) of the revenue of every barrel of oil went to the cost of the process and in Iraq only (14%) was the cost of the process.
🔹 If the Kurdistan Region had sold oil at the price and cost of SOMO, then instead of (39.06) dollars per barrel, (82.16) dollars would remain, that is, instead of returning 5 billion and 709 million dollars to the government treasury, (11 billion) dollars would return to the government treasury.
First, compare the oil prices of the Kurdistan Region and Iraq in
According to the analysis, the Iraqi government in 2022, through the Iraqi Oil Marketing Company (SOMO) sold an average of $ 95.54 per barrel, the total value of oil sold was (115 billion 466 million 245 thousand) dollars.
According to Duraid Abdullah, researcher and expert; “Foreign Oil Companies have 20% share out of 70% of the exported Iraq’s oil.
"Iraq spent $16.1 billion last year on oil production," he said.
According to this analysis, the return rate of Iraqi oil revenue was 86% and 14% went to the cost of oil processing. In other words, an average of $82.16 per barrel of oil sold returned to the Iraqi treasury and $13.38 was spent per barrel.
But that is not true for the Kurdistan Region! According to Deloitte, the Kurdistan Regional Government in 2022, through the Kurdistan oil pipeline, sold an average of $ 84.99 per barrel and the total value of oil sold and delivered to foreign buyers (through the pipeline except domestic) was (12 billion 331 million 417 thousand 848) dollars and (90 million 843 thousand 46) dollars from domestic oil sales, but only (5 billion 709 million 704 thousand 87) dollars were put on revenue and the KRG General Treasury (Ministries of Finance and Natural Resources).
Accordingly, the return rate of oil revenue was 46% and 54% went to the expenditure of the oil process. In other words, only $39.06 per barrel of oil sold in the Kurdistan region returned to the general treasury and $45.93 was spent per barrel of oil for the production process.