Oil Deal a Sign of Hope between Baghdad, Erbil

Article 112 of the Iraqi Constitution stipulates:

“The federal government, with the producing governorates and regional governments, shall undertake the management of oil and gas extracted from present fields, provided that it distributes its revenues in a fair manner in proportion to the population distribution in all parts of the country, specifying an allotment for a specified period for the damaged regions, which were unjustly deprived of them by the former regime, and the regions that were damaged afterward in a way that ensures balanced development in different areas of the country, and this shall be regulated by a law.”

Meanwhile, Barzani denied that the agreement signed between Baghdad and Erbil happened under external pressure, and stressed that Washington, London and the United Nations were encouraging both parties to sign the agreement.

However, the economic version of the agreement does not seem separated from the political version. It seems to be a response to the complex conditions of the relationship between Baghdad and Erbil. As a result, the salaries of KRG employees were not paid during the last few months of the former Iraqi government’s mandate.

In addition, it led to political estrangement between both parties and the exchange of nonstop accusations in recent years. It also represents a response to the reality of the common threat posed by the Islamic State on both parties.

The optimistic aspect in this oil agreement is that compromise is still possible in Iraq, despite the security situation and the political and economic challenges. In addition, intentions of resolving issues instead of resorting to aggravation can actually lead to a fair solution.