Iraq has signed a deal with the Kurdistan Region of Iraq to help the region increase its oil exports
Under the new agreement, which would come into effect on 1 January 2015, the Kurdistan Region of Iraq would be allowed to sell 300,000 bpd to Turkey from Kirkuk via a pipeline running through the Iraqi territory, in addition to 250,000 bpd from the region's own oil fields. The crude would be sold by region's state oil marketing organisation (SOMO).
In return, Kurdistan Region of Iraq would pay the federal government 17 per cent share of the regional oil sale and Iraq is expected to disburse US$1bn towards salaries and equipment for the Kurdish security forces, said the Iraqi Finance Ministry.
Masoud Haidar, member of Iraqi Parliament, said, “This agreement represents a victory for all Iraqis. There are no losers in this agreement. All are winners.”
Nickolay Mladenov, UN envoy to Iraq, added that he looks forward to the implementation of the agreement as swiftly as possible. “Only through direct and frank dialogue agreements can be reached that serve the interests of Iraq and the Iraqi people,” he further noted.
The Kurdistan Regional Government said that it needs finance to meet its growing security demands and to pay public sector employees and fund much-needed infrastructure development.
