The Kurdistan Regional Government (KRG) and the Baghdad semi-autonomous region has decided upon to settle a dispute over the oil payments following the continuation of exports to the northern region. The central government also nodded to the affirmative that it would pay the foreign companies working there. But after the 3 days delay of the non-payment of funds, Genel Energy president said “we did not receive anyfunds” and confirmed that they would cut off the exports due the non-payment of funds.
Kurdistan halted the shipments of oil barrels in the month of April due the non-payment of overdue payments but refurbished exports again after the deal was settled. The exports from the Kurdistan region have also risen to the optimum level of 170,000 barrels per day which is being procured from the fields of TaqTaq where the Genel Energy is established. The TaqTaq and Tawke region is the base of the KRG exports and the deliveries from here of around 95,000 bpd can be ramped.
On the similar note, Kurdistan has angered with the Baghdad government for also signing deals with the foreign oil majors, Exxon and Chevron. Iraqi deputy prime minister told a news channel that the Finance Ministry had issued an amount of $650 million as payment to the KRG. But the present debts have also increased to a huge extent which might invoke an outburst in the Genel Energy sources to relinquish the oil exports the Baghdad semi-autonomous region. London-listed oil exporter Genel had complained that they had not paid off their debts for most of the oil exports in the year 2009, 2011. Ev3n some of the other Norwegian operators also complained for the same reasons.
The oil contracts have become a wider source of trouble between the Baghdad and the Kurdistan over oil rights, regional autonomy and the territorial strains for the feeble Iraq’s federal union.