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.
A subsea pipeline project could lift export capacity by 500,000 bpd in just over a year, but the funds can't be released until Iraq passes a new budget.
Last-minute additions to the budget bill could undermine a new framework for oil and financial cooperation needed to restart northern exports and support Kurdistan’s oil sector.
Baghdad has sent nearly $1 billion to Kurdistan since March, highlighting political cooperation that could grow into reliable financial flows with the passage of a new budget law.
Iraq is ready to restart pipeline exports and relieve financial pressure on the KRG, but Turkey’s delays are prompting speculation of political complications.
Formal orders from SOMO highlight progress in Baghdad-Erbil negotiations to implement a new framework for Kurdistan’s oil and revenue. All eyes are now on Turkey.
Key details of the landmark Iraq-Turkey arbitration ruling have big implications for the future of Baghdad-Erbil power dynamics and the KRG oil sector.
