Oil dispute reignites Baghdad-Erbil Tensions

By Kamal Chomani for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraqi Prime Minister Adel Abdul Mahdi is under great pressure from his government to force the Kurdistan Regional Government (KRG) to deliver the allotted 250,000 barrels of oil per day to the State Organization for Marketing of Oil, as per the 2019 federal budget law.

Pan-Arab newspaper Asharq al-Awsat reported on May 22 that Abdul Mahdi has threatened to slash the KRG budget if the oil is not delivered. Ayad Allawi, the head of al-Watania alliance announced on May 28, that Abdul Mahdi asked him to go to Erbil and discuss the oil dispute with Barzani.

Allawi met with Barzani and received assurance from him to cooperate with Baghdad. Yet the dispute has not been solved.

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