Khurmala Dome accounts for one-third of Iraqi Kurdistan's oil output; the federal North Oil Company, which controlled the field until 2008, is taking legal action to reclaim it.
After a period of detente following the formation of a new government, politicians are raising new complaints about federal budget payments to Kurdistan.
As populist MPs raise unsubstantiated corruption allegations around oil projects, decision makers are moving cautiously on major initiatives while they beat back political opportunists.
Production is unaffected and the security situation appears calm as ExxonMobil evacuates dozens of foreign staff from the West Qurna 1 field, following U.S. claims of threats from Iran.
Output continues to fall as state-operated fields in Basra produce 400,000 bpd below capacity.
The 50,000 bpd Kirkuk refinery is set to produce more quantities of higher-quality gasoline and naphtha, thereby reducing the fuel oil that is exported.
As the U.S. evacuates diplomatic personnel, citing threats from Iran, Iraq's oil sector and its IOC partners maintain status quo.
Iraq's largest refinery is set to expand by over 30 percent this year.
The Cabinet threw political weight behind the Southern Iraq Integrated Project, injecting momentum into negotiations over a massive infrastructure deal that is critical to Iraq's production and export growth.
Political leaders on both sides indicate their court battle is still on, but the proceedings are delayed, pending a revised pleading from the prime minister.
