Erbil and Baghdad: One Step Forward?

By John Lee.

Just as some observers were saying the dispute looked intractable, Deputy Prime Minister for Energy Hussein al-Shahristani has announced a potentially big breakthrough in the ongoing saga of deal and no deal between Baghdad and the Kurdish Regional Government over oil exports to Turkey and oil revenues.

Reuters has reported that after intensive negotiations which have seen Kurdish oil exports stuck at the Turkish port of Ceyhan, the KRG has agreed to export through SOMO, the State Oil Marketing Organisation.

If such a deal survives where previous agreements have stumbled, this leaves an ongoing dispute about the 17% of oil revenue the KRG is supposed to receive from Baghdad, which the KRG complains is frequently reduced. Since January, Baghdad has been withholding salaries of civil servants in the KRG and threatening to sue Turkey.

Shahristani has hailed the deal with SOMO as a positive step forward, and salaries for KRG civil servants will supposedly be paid for the month of January. Shahristani has said February’s payments will go through when the SOMO deal comes into effect.

(Source: Reuters)

 

6 Responses to Erbil and Baghdad: One Step Forward?

  1. Cristiano Ronaldo February 20, 2014 at 4:43 pm #

    And do not pay salaries to any public employee and force the kurds to proclaim independence. Then kick out all international oil companies out of Iraq where ENI is in a pole position, then give up controll of the oil pipelines where unneeded oil export are aborted and blame somebody else for all those actions. Perhaps Micky Mouse is responsible for this mess. Or Saudi, or Turkey or ??

    All that jazz for creating a “popular belief” that Iraq have strong leadership and other fairy tales just before the elections.

  2. Re da Caste February 22, 2014 at 3:39 pm #

    Politics in Iraq are a nightmare. Since about five years I’ve been investing some heavy part of my savings into the oil business in Iraq and mainly in the kurdistan region. I have been waiting and waiting for an agreement between the central government and KRG on the oil policy. The HCL has been dicussed since loooong time, the Kirkuk situation, now the export to Turkey. But nothing happens! Is anyone trying to find a solution or is it still only a question of power? This must end now, otherwise the investors will run away. I will for sure.