Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
FRIDAY, 25 APR 2014
12:55 AM Beirut time
22 °C
Blom Index
Middle East
Follow this story Print RSS Feed ePaper share this
Iraq, Kurds reach preliminary oil deal: officials
Agence France Presse
A+ A-

BAGHDAD: The Iraqi government and Kurdistan struck a preliminary deal on Thursday on a months-long oil dispute that will see the autonomous region export 200,000 barrels of oil per day, officials said.

Kurdistan halted its oil exports via the federal government on April 1 over $1.5 billion it said is owed to foreign oil companies working in the region that Baghdad has allegedly withheld, but then resumed them again on August 7, in what was billed as a confidence-building measure.

A Kurdistan official then said on September 1 that the region would extend the exports until the 15th.

"The Baghdad government and the Arbil government have reached an agreement during a meeting held in the office of Deputy Prime Minister Roz Nuri Shaways," an Iraqi government official said on condition of anonymity.

"They agreed that the Kurdistan region will export 200,000 barrels (of oil) per day, and a committee will be formed from the two sides ... to settle the dues of the foreign oil companies working in the region," the official said.

Delegates on the Iraqi side included the oil minister and the head of the State Oil Marketing Organisation, the official said.

An official in the Kurdistan government, also speaking on condition of anonymity, confirmed that a deal had been reached.

The Iraqi official said the committee members will include officials from the trade, oil and finance ministries from the two sides.

Iraq's cabinet threatened on September 4 to cut the autonomous Kurdish region's budget by $3 billion over the suspension of oil exports.

Prime Minister Nuri al-Maliki's spokesman Ali Mussawi said that the cabinet had "decided to give the Kurdistan regional government one week to come and defend themselves," or the funds will be cut from Kurdistan's budget.

Baghdad and Arbil are at odds over issues including Kurdistan's refusal to seek approval from the central government for oil contracts it has awarded to foreign firms, and over a swathe of disputed territory in northern Iraq.

The federal government prefers per-barrel service fee contracts, while Kurdistan offers more lucrative production-sharing contracts that have drawn oil majors including ExxonMobil, Chevron, Total and Gazprom to risk Baghdad's wrath by signing deals with region.

Baghdad says all oil deals must go through the national oil ministry and regards any that do not as illegal.

Home Middle East

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus

Baabda 2014
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Pictures of the day
A selection of images from around the world- Thursday April 24, 2014
View all view all
Rami G. Khouri
Rami G. Khouri
Israel shows Zionism’s true colors
Michael Young
Michael Young
For Christians, blessed are the dividers
David Ignatius
David Ignatius
An Iran deal is close, but we’re not there yet
View all view all
Click to View Articles
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS