KRG-Baghdad still at odds over IOC pay

The war of words between the autonomous Kurdistan Regional Government (KRG) and the central government of Iraq has again flared up, with Iraqi Oil Minister Hussein al-Shahristani telling international media that it is the KRG that is holding up work on connecting its new oilfields to the national export routes—the only routes currently available to the region as Iraq's neighbours are supporting its central government on the issue.

"Work is continuing to connect the [northern oilfields] to the Iraqi network. But there are objections from the KRG to handing over the oil, claiming that companies that developed the oilfields should be rewarded," al-Shahristani told pan-Arab daily Asharq al-Awsat today, calling the IOCs that have signed the divisive production-sharing contracts (PSAs) with the KRG "fourth or fifth" level companies.