New oil deal good for KRI, Iraq, and Neighboring Countries: KRG’s representative to Baghdad

ERBIL (Kurdistan 24) – Fars Issa, the Kurdistan Regional Government’s (KRG) representative to Baghdad, on Wednesday told Kurdistan 24 that the accord between Erbil and Baghdad will have good results for both sides.

Issa said that the agreement is not only important for the Kurdistan Region and Iraq, but also for the neighboring countries.

He reiterated that the accord will serve as an opportunity to resolve Erbil-Baghdad outstanding issues.

Prime Minister Masrour Barzani visited Baghdad on Tuesday and signed a new deal that would temporarily allow the Kurdish region to export its oil to Turkey’s Ceyhan port. It had been halted after Iraq claimed victory in a legal challenge against Turkey at the Paris-based International Court of Arbitration.

PM Barzani and Iraqi Prime Minister Mohammed Shia’ Al-Sudani held a joint news conference following the signing ceremony in the Iraqi capital on Tuesday.

Per the new deal, the Iraqi state-owned marketing company, SOMO, will market and export 400,000 bpd of Kurdish crude oil at market prices.

The revenue from Kurdish oil sales will be deposited in a Central Bank of Iraq (CBI) account owned by the KRG and monitored by Baghdad, according to the agreement.

The agreement will be in effect until a final hydrocarbon law is enacted. At the press conference on Tuesday, both Premiers declared that the principles of the temporary oil agreement would be reflected in a federal hydrocarbon law in the future.