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Kurdistan challenges Baghdad export powers

In a bid to expand its oil powers, the KRG is aiming to debunk SOMO's status as the exclusive exporter of Iraqi crude.
Kurdistan Regional Government Minister of Natural Resources Ashti Hawrami speaks at the CWC Iraq Petroleum conference in 2010. (Photo credit: CWC)

LONDON - Iraq's semi-autonomous Kurdistan region has opened a new front in its battle with Baghdad over oil rights, challenging the central government's exclusive authority to export crude by forging an economic alliance with Turkey and attempting to exploit ambiguities in Iraqi law.

The Iraqi government contends that control of oil exports -- and the resulting revenues -- is a federal power of international trade enshrined in the Constitution, as it is in other states around the world. The State Oil Marketing Organization (SOMO), which reports to the Oil Ministry, is the only organization to which Baghdad has given authority to market and sell oil.

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