Azerbaijan, Baku, Sept. 5 / Trend R. Hafizoglu /
The Iraqi government will deduct $3 billion from the budget of the Kurdish administration within the next few months to compensate for losses caused by the cessation of oil supplies from the Kurdish autonomy to the central authorities of the country, Al Jazeera TV channel said today.
Adviser to Iraqi Prime Minister Ali al-Musawi said that a special commission found that Iraq's financial loss exceeded $3 billion in connection with the termination of the oil supply from the Kurdistan autonomy.
The issue of oil production and export from the territory of the Kurdish administration of Iraq is the subject of disagreement between the central and regional governments.
The Iraqi parliament has been considering an opportunity for adopting a law on oil for seven years which would envisage the joint development of oil and gas fields by the federal and regional governments. In this case, the regional government will be involved in attracting investments and companies in development and production.
The revenues derived from production at the fields which are located in the Kurdish autonomy will be divided on the following basis: 60 per cent to the budget of the central government and 40 per cent to the regional government.
According to BP, Iraq's proven oil reserves amounted to 143.1 billion barrels as of late 2011.
The country ranks third in OPEC after Saudi Arabia and Iran. According to BP, oil production in Iraq amounted to 2.798 million barrels per day in late 2011.
The Kurdish administration in northern Iraq has oil reserves of 45 billion barrels.