Baghdad/Erbil Oil Agreement of Brink of Collapse

By John Lee.

The agreement between the Kurdistan Regional Government (KRG) and the Iraqi central government agreement on budget and oil exports looks set to collapse.

Kurdish MP Ardalan Nouraddin told BasNews that a new agreement will be signed, adding, “the details are yet to be revealed.

Under the December agreement, the KRG was to sell 550,000 bpd through Iraq’s State Oil Marketing Organization (SOMO).

But in June, the Kurds exported most of their oil independently, because they say Baghdad was giving them less than their agreed share of the budget.

The Wall Street Journal quotes Jabbar Abdul Khaliq, an Arab member of parliament’s finance committee, as saying, “Baghdad didn’t pay what Kurdistan was asking for because Kurdistan didn’t give Baghdad what it was supposed to.

(Source: BasNews, Wall Street Journal)

(Picture: SOMO HQ)

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