BAGHDAD: The Iraq Government has reached agreement in principle with the Iraq Petroleum Company on a new level of royalty payments, Premier Nuri es-Said Pasha told the Senate today [May 26]. Talks have been going on between the Government and Company since the beginning of this month. The Iraq Government issued a writ against the Company last month claiming higher royalties. Up till now the country has received the royalties on the official gold exchange rate, giving her 18 shillings a ton.

Under the new agreement royalties the Company pays to the Iraq Government will be pegged to the royalties paid to the Saudi Arabian and Iranian Governments by oil concessionnaires in those countries. It provides that Iraqi royalties per ton of crude oil exported will be more than those received by Saudi Arabia and not less than those received by Iran ... the Prime Minister said.

Present rate of royalties the Iraq Petroleum Company pays is six shillings in gold, 17 shillings and six pence sterling a ton. — News agencies

Published in Dawn, May 27th, 2026