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Analysis: Legal conflict looms as oil politics deteriorate

As Baghdad threatens to sue Genel Energy for its independent KRG exports, the course of Iraqi oil policy - and Kurdish autonomy - may be decided in court.
Tankers carrying liquid condensates derived from natural gas leave the Khor Mor facility in Iraqi Kurdistan, January 2013. (JACOB RUSSELL/Metrography/Iraq Oil Report)

ERBIL - Leaders in Erbil and Baghdad are approaching what could be a decisive confrontation in their long-standing dispute over oil policy and autonomy: a legal battle over the Kurdistan Regional Government's (KRG) independent crude exports.

The flashpoint of the potential legal conflict is Anglo-Turkish company Genel Energy, which has trucked oil from the KRG's Taq Taq field to Turkey without Baghdad's approval. In response, federal Oil Minister Abdul Karim Luaibi has repeatedly threatened to sue, calling Genel's exports "a violation of the Constitution and all the valid laws."

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