A collection of Iraqi oil experts outside of government have sent an open letter to the Iraqi Parliament, just as it takes up a draft budget that incorporates the Dec. 2 deal between Baghdad and Erbil.

Rising oil output give KRG a strong negotiating position, but demands over independent export rights and control of disputed fields could put pressure on fragile Baghdad rapprochement.

The recent Baghdad-Erbil oil deal has inspired optimism, but it avoids key details at the heart of big issues – control of territory and oil rights – on which neither side wants to compromise.

Export and revenue swaps and Peshmerga funding set the stage for budget talks.

The KRG has authorized delivery of 150,000 bpd of oil into federal control, the first step in an interim export agreement that could spur political talks.