Minister proposes solution to resolve oil dispute

ERBIL, Kurdistan Region (Kurdistan24) – The Iraqi Oil Minister proposes a resolution for the Kurdistan Regional Government (KRG) and the Iraqi federal government to resolve the oil dispute. 

Adil Abdulmahdi, the Iraqi Oil Minister, released a statement on Tuesday asking the Kurdistan Regional Government (KRG) to go back to the oil budget agreement with the Iraqi government, or there should be a new deal signed between Erbil and Baghdad in-line with the Constitution and the law.

Abdulmahdi stated that the oil deal between Erbil and Baghdad was partially implemented in the first half of 2015 but not for the rest of the year. “The oil agreement included delivery of 550,000 barrels per day to Baghdad’s oil marketing SOMO by the KRG in exchange for the payment of the Kurdistan Region’s 17 percent share in the Iraqi national budget,” he added.

The agreement signed in late 2014, was cancelled as the Iraqi government did not deliver the Kurdistan Region’s budget fully and later the KRG decided to export oil independently. Both governments accuse each other of not abiding by the agreement.

“If the oil prices were high or above $60 per barrel, the oil deal would have proceeded despite the disagreements, but the fall of oil prices made money very scarce in Baghdad, and the need for money from the KRG were very high, [the pressures] caused the agreement to fail,” Abdulmahdi’s statement revealed.

Previously, Kurdish politician and former Iraqi Migration and Displacement Minister Dindar Najman Doski told Kurdistan24 that “Baghdad is struggling with a financial crisis. I am not hopeful that they will financially support the Kurdistan Region.”

Reporting by Baxtiyar Goran

Editing by Ava Homa