The Iraqi parliament is scheduled to discuss a bill on Tuesday that could increase the rate for producing and transporting a barrel of oil from the Kurdistan Region by nearly $10. This comes amid ongoing efforts to resume Kurdish oil exports, which have been halted for 19 months.

Earlier this month, the Iraqi government approved a proposal to amend articles from the federal budget to allow compensation for companies operating in the Kurdistan Region. The amendment sets the rate at $16 per barrel to cover oil production and transportation costs.

According to the parliamentary agenda for Tuesday’s session, lawmakers will conduct the first reading of the bill, followed by a second reading and a vote. If approved, the amendment will facilitate the resumption of the Kurdistan Region’s oil exports to international markets via the Ceyhan pipeline.

The current federal budget bill, passed in June 2023, set the oil rate at $6.90 per barrel. However, international oil companies (IOCs) have requested a higher rate, approximately three times that amount. The Kurdistan Region had been exporting around 400,000 barrels of oil per day through the Iraq-Turkey pipeline before exports were suspended in March 2023. This halt followed a ruling by a Paris-based arbitration court that favored Baghdad, stating that Ankara had violated a 1973 pipeline agreement by allowing Erbil to export oil independently since 2014.

Kurdistan Region Prime Minister Masrour Barzani highlighted the economic impact of the halt, stating on Saturday that the region has lost around $20 billion due to the suspension. "It is hurting the rest of the country as well," he added during a panel at the Middle East Peace and Security (MEPS) Forum in Duhok.

Myles Caggins, spokesperson for the Association of the Petroleum Industry of Kurdistan (APIKUR), expressed cautious optimism about the proposed amendment, calling it a "good step." However, he emphasized the importance of securing written agreements before any oil exports resume. “Before we begin exporting oil, we must have written agreements,” Caggins stated. “After the budget law is passed, each individual company must agree to these terms under the new contracts.”

Iraq's Foreign Minister Fuad Hussein also indicated that Kurdish oil exports could resume within weeks. The discussions in parliament will be a critical step in addressing the long-standing oil export issue between the Kurdistan Region and the federal government.