Frustrated companies are threatening to stop production amidst payment holdups, while Baghdad initiates a $514 million transfer for past exports.
As Baghdad approves a $541 million payment to Kurdistan, leaders hope their budding good will can lead to a long-term resolution of oil disputes.
In its first meeting, a special committee has designated two of its members – the oil ministers from Baghdad and the KRG – to write legislation that could structure Iraq's oil sector.
A Parliament order has named the five negotiators who will attempt to overcome long-standing differences and synthesize a new draft oil law.
Baghdad takes a step toward paying the KRG for rising exports, but technical and political hurdles remain.
If the Iraqi Cabinet approves a new KRG-Baghdad oil deal, Kurdistan will agree to export a quarter-million barrels per day in 2013.
The oil ministers from the central and Kurdish governments agreed that Kurdistan will boost exports and Baghdad will pay contractors.
A special subcommittee will determine which version of the controversial law will be the basis for debate in Parliament.
Kurdistan's contractors have escaped serious consequences for defying Baghdad's claims of oil sector supremacy – but central government leaders are preparing to follow through on their threats.
The Iraqi Cabinet is targeting more than $3 billion in cuts from the KRG budget, as a bitter dispute over oil exports comes to a head.
