No clarity on Iraq-KRG oil export flap

News of a breakthrough in relations between the KRG and the Iraqi central government received a major setback yesterday after Oil Minister Hussein al-Shahristani called the production-sharing agreements (PSAs) between the KRG and IOCs "illegal and illegitimate" in media comments, indicating that while the KRG is allowed to export oil, the oil companies would not be reimbursed for their investment.

Without the oil minister's agreement, the dispute still seems stuck on the issue of who should pay the IOCs for their work. News of a breakthrough in this long-running dispute can only be assessed as crude exports begin, particularly since the KRG is using talk of potential exports to put pressure on the national government to allow exports at a time when any revenue is desperately needed.