Iraq/Kurdistan: Kurdistan Pushes Independent Oil Company Plan after $500m Deal with Iraq

Nov 14, 2014 | Middle East Eye
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A preliminary deal between Baghdad and Iraq's Kurdish region to resolve long-running financial disputes over oil has reduced a threat to national unity, Iraq’s oil minister said on Friday.

There has long been tension between the central government, based in the capital Baghdad, and the semi-autonomous region of Kurdistan in northern Iraq (KRG).

Baghdad opposes the KRG’s independent exporting of oil - Kurdish leaders, on the other hand, have criticised Baghdad for allegedly withholding budget payments from the region.

In a first move to end the disputes, the two sides have now agreed for Baghdad to pay $500m to Kurdistan in exchange for the transfer of 150,000 barrels of oil per day to the federal government.