Construction is underway on a new pipeline to bring gas supplies from the Khor Mor field up to Dohuk.
The KRG has received 598 billion dinars under the new budget law — a fraction of its theoretical monthly entitlement.
Key details remain unresolved, including the lynchpin issue of whether oil companies will get paid enough to enable KRG fields to restart.
Sign of cooperation bolsters KRG argument for starting federal budget transfers.
The oil-for-gas deal could sort out a number of internal Iraqi issues – both energy and political.
Political scrutiny of a contract is delaying a subsea pipeline project with the potential to lift export capacity by 500,000 bpd in a year.
Ankara sent a technical delegation to Baghdad but the two sides seem far from the top-level political agreement needed to restart oil flows.
New budget law appears to represent a rejection of the recent Baghdad-Erbil political deals that had sought to balance oil and financial authorities.
Upset about provisions in Iraq's draft budget law, refinery employees are shutting down tanker traffic and threatening a crippling fuel shortage.
Politicians are bristling at contractual terms that many investors demand to help protect them from the dysfunction of Iraq’s investment climate.
