At a Glance 

• The KRG Ministry of Natural Resources officially dismissed recent operational claims as completely false.

• Wood Mackenzie data shows current regional output at 255,000 barrels daily.

• A federal team actively supervises oil exports to Turkey.

• All proceeds go directly to the Federal Ministry of Finance treasury.

• Operating companies are vetted, publicly traded entities with court-recognized contracts.

• The KRG has granted federal officials full access to regional fields.

The Kurdistan Regional Government’s Ministry of Natural Resources has categorically rejected allegations made by a former MP regarding regional oil production, smuggling, and revenues, labeling them as false and damaging to both joint KRG-federal regulatory mechanisms and the international investment environment.

Key Statements and Focus Area

• The Ministry of Natural Resources stated that, “In accordance with the Federal General Budget Law, Wood Mackenzie, a specialized consulting firm contracted by the Federal Ministry of Oil, was selected to study the volume of oil produced in the Kurdistan Region's fields, as well as production and transportation costs. According to the company's data, the Region's current oil production stands at approximately 255,000 barrels per day.”

• “Talking about oil smuggling reveals a clear ignorance of the export mechanisms and regulatory oversight procedures adopted to manage these operations,” the ministry stressed.

• The KRG emphasized that, “All revenues generated from the sale of oil exported from the Kurdistan Region via SOMO go directly to the treasury of the Federal Ministry of Finance. Accordingly, any claim of violations related to these revenues must be backed by evidence, and the responsibility should be directed to the entities that manage and oversee these funds.”

The KRG Ministry of Natural Resources has dismissed allegations in an official statement regarding the region's oil production, exports, and international oil partners made by former federal MP Ala Talabani on a channel which is “an outlet affiliated with militias known for their hostile positions toward the Kurdistan Region,” condemning her statements as "false and misleading claims."

According to the ministry, these unsubstantiated allegations defame KRG institutions while undermining the credibility of joint federal management mechanisms.

The statement noted that data from Wood Mackenzie, the firm contracted under the budget law, shows KRG oil production at approximately 255,000 barrels per day, adding that the firm's projections further indicate that, under optimal conditions, regional production could reach 308,000 barrels per day by 2027, provided that international oil companies receive their full financial entitlements and stable security conditions permit continued investment in essential drilling and development operations.

Consequently, alleging figures and attributing them to a reputable international institution without them being officially published or announced by that institution is a "clear deception of public opinion and an attempt to present unverified information as facts.”

The ministry stated that misattributing figures to a reputable international body before an official release is a "clear deception of public opinion and an attempt to present unverified information as facts."

The ministry stated that allegations of oil smuggling reveal a "clear ignorance of the export mechanisms and regulatory oversight procedures" governing these operations.

The KRG highlighted that 42 representatives from the Federal Ministry of Oil actively supervise the export of regional oil to Turkey.

Furthermore, the statement noted that any smuggling claim directly questions the federal entities responsible for these operations, which are jointly managed by the North Oil Company and SOMO. The ministry added that if these claims had actual merit, the Federal Ministry of Oil should clarify the facts and defend its personnel rather than leaving the floor open to "false and misleading accusations."

The ministry emphasized that all revenues generated from the sale of KRG oil via SOMO go directly to the treasury of the Federal Ministry of Finance.

Accordingly, the statement argued that any claims of violations regarding these funds must be backed by evidence and directed toward the entities overseeing them. Therefore, the KRG countered that targeting regional institutions instead of holding federal authorities accountable "lacks logic and objectivity."

The ministry highlighted that oil companies operating in the region are well-known international corporations subject to strict global standards of financial disclosure, auditing, and "compliance, and anti-corruption."

Furthermore, the KRG noted that the contracts of these companies have been legally recognized by the Federal Court and remain fully in effect. The statement also pointed out that several of these international partners hold valid contracts with the Federal Ministry of Oil and operate in other regions of Iraq.

Consequently, the ministry condemned claims that these firms belong to local ruling families, calling it a serious accusation that damages the investment climate in "the Kurdistan Region and Iraq as a whole."

The KRG warned that launching unsubstantiated attacks damages Iraq's investment reputation and "undermines the trust" built with international investors.

The ministry stated that both governments have worked diligently over past years to responsibly settle disputes related to the oil dossier. Within this framework of cooperation, the KRG allowed the federal oil ministry to visit all regional fields and gave independent international experts full access to inspect export meters.

However, the statement cautioned that launching baseless allegations fails to serve the national interest and instead "obstructs the cooperation, coordination, and understandings" achieved between Baghdad and Erbil.

In conclusion, the ministry called upon media outlets to maintain professionalism, verify facts through official channels, and refrain from publishing "unsubstantiated allegations." Finally, the KRG reaffirmed its constant readiness to clarify data in line with its ongoing "commitment to transparency and the protection of the public interest."

FYI

This statement responds to a brewing political crisis between Erbil and Baghdad as negotiations over Iraq’s 2027 federal budget intensify. The KRG Ministry of Natural Resources issued the rebuttal after Ala Talabani, a former Iraqi lawmaker and current advisory official, publicly alleged on Al-Oula TV that Kurdish oil was being systematically smuggled into Turkey via complex routes through Syria. 

Talabani's televised claims also included statements from an unnamed lawmaker asserting that Kurdistan secretly produces 650,000 barrels of oil daily, vastly exceeding legal budget quotas.

To counter this, the KRG leveraged data from Wood Mackenzie, a highly reputable British energy consultancy officially contracted by Iraq's federal Oil Ministry under the federal budget law to evaluate regional extraction and transport costs. 

By citing Wood Mackenzie's official audit, the KRG is highlighting that independent, third-party oversight already regulates the sector and proves the region's actual output is far lower than political opponents claim. 

Erbil is using these verified transparency metrics to defend its international corporate partners and secure regular employee salary allocations from Baghdad ahead of upcoming budget votes.

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