Future uncertain for Baghdad-Erbil oil cooperation
Despite a breakthrough deal between the Iraqi federal government and the Kurdistan Regional Government to cooperate on oil exports from northern Iraq, thorny issues remain.
ERBIL, Iraqi Kurdistan — While a recent deal between Baghdad and Erbil to export oil from the northern fields is seen by many as a breakthrough after years of stalemate, the prospect of further progress on oil exports still remains uncertain.
On Nov. 13, Iraq’s oil minister, Adil Abdul-Mahdi, and Iraqi Kurdish authorities reached a deal whereby the Kurdistan Regional Government (KRG) will export 150,000 barrels of oil per day.
In return, the Baghdad government will possibly deliver as much as $1 billion to the KRG, which has been struggling to pay its employees and fund public projects ever since the central authorities in Baghdad cut its budget in February.
The very terms of the deal, however, still remain somewhat vague. The KRG’s official website stated Nov. 13 that the federal authorities in Baghdad will pay $500 million to the Iraqi Kurdish government, and that the KRG will place “150,000 barrels a day of crude oil” at the disposal of the Iraqi government.
