By Simon Kent.
Kurdish and Iraqi officials are still thrashing out details of a more sustainable and far reaching oil revenue and exports deal, following the resumption of federal oil exports into the Kurdish pipeline from Kirkuk.
Last week, 100,000 bpd of Kirkuk crude from Baba Gorgor, Jambour and Khabbaz, three fields in the giant Kirkuk formation, were pumped into the Kurdish export pipeline, on the orders of Baghdad.
Previously, the federal North Oil Company (NOC) had re-injected the oil but there were growing fears this would damage reservoirs. At the moment, both sides are working on revenue arrangements for this oil, which will be exported from Ceyhan in Turkey (pictured).
While the NOC still has three fields in the Kirkuk formation, the Kurdish Peshmerga control fields occupied in June 2014, including Bai Hassan and Avana. A longer lasting deal therefore, may be politically difficult for both sides, since many Kurds also blame Baghdad for cutting off their budget share, which the Maliki government did in early 2014.