Iraq, Kurdistan choose ‘dialogue’ to ease oil dispute

BAGHDAD (AFP) – The federal authorities in Baghdad and the autonomous Kurdish area pledged on Saturday to “enhance dialogue” to ease a simmering oil dispute that has been taking part in out within the courts in latest months.

The announcement got here throughout a uncommon go to to the Iraqi capital by the Kurdish area’s prime minister. Masrour Barzani, who had not visited Baghdad since 2019, met Iraqi Prime Minister Mustafa al-Kadhemi for wide-ranging talks.

An oil dispute that has been poisoning relations between the 2 sides, and threatening to hurt Iraq’s lifeline oil trade in line with analysts, was among the many matters.

“It was agreed to extend dialogue between the Federal Ministry of Oil and the Ministry of Pure Sources within the Kurdistan area of Iraq to handle the excellent points and proceed working to succeed in widespread options,” a press release from Kadhemi’s workplace stated.

“The 2 sides… emphasised the necessity to strengthen cooperation and joint coordination between the federal authorities and the regional authorities to draw investments, and maximise revenues,” it added.

The long-simmering dispute got here to a head in February – at a time of political impasse in Baghdad – when the federal supreme courtroom ordered Kurdistan handy over oil extracted from its territories to the federal authorities.

Then earlier this month, a business courtroom within the Iraqi capital annulled contracts between the Kurds and international corporations, after the Oil Ministry in Baghdad filed a judicial grievance.

Iraq, the second largest producer within the Group of the Petroleum Exporting International locations, sits on monumental reserves, and revenues from the sector feed 90 per cent of the federal authorities price range.

It exports a median of three.3 million barrels per day (bpd) of crude, whereas manufacturing in Kurdistan quantities to only over 450,000 bpd.

In a bid to defuse tensions, Kurdistan proposed organising two firms specialised in oil exploration and advertising that may coordinate with Baghdad, a spokesperson for the regional authorities stated earlier this month.

Baghdad has fought to regain management of output from fields in Kurdistan for the reason that autonomous area started advertising oil independently greater than a decade in the past.