Both Iraq and Kurdistan has confirmed the deal that aims to resolve the oil dispute between these two parties and the Kurds has agreed to export 200,000 bpd oil.
Arbil (Iraq) – On Friday, Iraqi Kurdistan has confirmed that it is going for a deal which will solve the long standing oil dispute with Baghdad and the region will keep on exporting 200,000 bpd oil and will also receive an amount of $833 million as advance.
Kurds had stopped the oil export through the central government in April, because Baghdad allegedly owed $1.5 billion to the oil companies working in the region, but the oil supply was resumed on 7th August. This step was taken for confidence building.
On 1st September, a Kurdish official said that the supply of the oil will be extended up to 15th of the month.
This deal has been drafted on Thursday in a meeting which has been chaired by the deputy Prime Minister Roz Nuri Shaways and various Iraqi and Kurdish officials have attended the meeting according to the statement released by the Kurdish government in its official website.
According to the deal, which is to be signed next week, Kurdistan will export 140,000 bpd oil for the rest of September and 200,000 bpd for the rest of the year.
Meanwhile the Kurdish authorities will receive one trillion Iraqi dinars or $833 million from the central government. Moreover, it will determine the amount of the exported oil in 2013 and the amount of money that is due to the companies which are working in the region will be included in the budget of the 2013, according to the statement.
This region will receive 17% of the refined oil and 17% of the crude oil that is supplied to the power plants of Iraq.
Both the sides have agreed upon the term that a committee of representatives will be established with the Iraqi and Kurdish government to supervise the amount of the oil which is being produced and refined and will also keep a note of the money due to the companies working in the region.
A separate committee with representative from both these sides will look after the follow up and implementation of the agreement and it will also work to solve the other problem that may crop up until the oil and gas law is passed. The law has been thwarted for years now.
Both Baghdad and Arbil were at loggerheads on the issue of Kurdistan’s refusal to ask for approval from the central government about the oil contracts it has signed with the foreign firms and over another dispute regarding territory in northern Iraq.
According to Baghdad, all the oil deals must go through the oil ministry and the ones which haven’t followed the process will be branded as illegal.
Source [Middle East Online]