Baghdad-Erbil oil talks stall over federal refusal to sign written deal: Source
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ERBIL, Kurdistan Region - Negotiations between Erbil and Baghdad on resuming Kurdish oil exports have stalled, as the two sides have failed to reach consensus on a formal, written agreement, a source familiar with the talks told Rudaw on Tuesday.
Speaking on condition of anonymity due to the sensitivity of the discussions, the source said, 'The federal government has not agreed to put the agreement in writing and wants it to remain verbal.' In contrast, 'The Kurdistan Regional Government [KRG] insists on a written deal.'
According to the same source, Baghdad's reluctance stems from concerns that a formal agreement could be exploited by political rivals of Iraqi Prime Minister Mohammed Shia' al-Sudani ahead of Iraq's legislative elections, slated for November 11.
Rudaw learned on Tuesday that a KRG delegation, led by Acting Natural Resources Minister Kamal Mohammed, returned to Erbil earlier this week after three days of talks in Baghdad aimed at resolving long-standing oil disputes.
On Sunday, informed sources from both Erbil and Baghdad told Rudaw that the talks had been progressing in a 'calmer environment,' breaking past tensions. However, one of the main sticking points remains the volume of oil that the KRG is required to deliver to Iraq's State Oil Marketing Organization (SOMO).
While Baghdad insists the KRG must export 400,000 barrels per day (bpd), Erbil has proposed an initial volume of 280,000 bpd, the sources added.
Oil exports from the Kurdistan Region via the Iraq-Turkey pipeline have been halted since March 2023. This followed a ruling by a Paris arbitration court that found Turkey had violated a 1973 pipeline agreement by allowing Erbil to export oil independently of Baghdad's consent.
Kurdistan Region Prime Minister Masrour Barzani stated last week that the suspension of exports has cost the Region over $25 billion in lost revenue.
In February, Iraq's parliament amended the federal budget law to include a $16-per-barrel fee to cover production and transportation costs for international oil companies (IOCs) operating in the Region. The amendment also requires both governments to jointly appoint an international consultancy to audit and assess those costs. If they cannot agree on a firm, the Iraqi cabinet will make the selection.
These changes were intended to facilitate the resumption of Kurdish oil exports. A technical delegation from Baghdad visited Erbil last Wednesday to discuss revenue-sharing mechanisms and other unresolved issues.
Finalizing an agreement is seen as crucial to resuming payments to more than 1.2 million public sector employees in the Kurdistan Region.
In late May, Iraq's finance ministry halted all budget transfers to the KRG, accusing the Region of exceeding its 12.67 percent share of the federal budget - a claim rejected by Kurdish political parties, who denounced the decision as unconstitutional and politically motivated.
Hastyar Qadir contributed to this piece.
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Its purpose was to allow Iran to save face by responding to the U.S. attack on its nuclear facilities but without causing casualties or damage.[1] The target – Qatar (rather than Saudi Arabia, the UAE, Bahrain or Jordan) – was chosen by Iran because this country is an ally, and therefore coordinating the attack with it in advance allowed Iran to avoid the risk of escalation.[2] Moreover, Qatar serves as a mediator between Iran and the U.S. Despite Iran's attack on Qatar's territory, the Qatari media was restrained in its response to this country, and preferred to blame the escalation on Israel.[3] This messaging aligns with the policy of Qatar, which expressed unwavering support for Iran throughout the war with Israel,[4] including after the U.S. strike on Iran's nuclear facilities.[5] In contrast to this line, the Qatari government daily Al-Sharq published an unusual article in response to the Iranian missile attack on Al-Udeid base, which was removed from the newspaper's website a few hours after its publication. 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What increases the severity of this act is that it was carried out against a country that has never attacked Iran, but has always striven for restraint and for prioritizing diplomacy over escalation, even in the most difficult moments befalling the region. Thus, this attack constitutes an unjustified escalation, and threatens to further exacerbate tensions. "Any attempt to harm [Qatar's] role, or to use political violence to change the rules of the game in the region, will not pass without an appropriate response on all levels: legal, political, and security. Harm to the [Al-Udeid air] base also directly threatens Qatar's allies. Thus, there is a need for a responsible international position that will not settle for condemnation but will rise to the level of deterrent action... "[Qatar's] relevant apparatuses dealt very professionally with the incident [of the Iranian missile attack], successfully minimizing damage and avoiding casualties. This sends a clear message: Qatar is ready, alert, and capable of defending itself, its interests and its people. This rapid response [to the attack] is a manifestation not only of military readiness, but [also] of the cohesion of its entire national security array, from the command [level] to the executive [ranks]… 'The solidarity with Qatar [expressed by various countries after the attack on CENTCOM] reflects the depth of the relations established by Qatari diplomacy over the years. This proves that Qatar's balanced positions were not for nought – they gained for it global political credit, which is today translated [into solidarity with Qatar] at the moment of conflict. "Today we face a real test of the international community's seriousness in defending small and medium-sized countries from attacks by regional actors who scoff at international law. The UN Security Council and secretary general have a moral and legal responsibility to condemn this attack, to act as soon as possible to prevent it from happening again, and to take the necessary deterrent measures. Any leniency in addressing this aggression opens the door to similar aggressive behavior [in the future], and undermines the UN Charter, the second article of which prohibits the use of force against any state's territorial integrity or political independence. "Qatar, with its wise leadership and united people, rejects dictates and does not fear conflict when it comes to its honor and sovereignty. At the same time, however, it adheres to the legal and diplomatic tracks, and calls on the international community to stand against irresponsible policy that threatens security and peace in the region. We are aware that power lies not only in the possession of weapons, but also in gaining legitimacy, defending justice, and persevering in principles. Qatar has already proven that it is a country that stands firm in its position, is wise in its response, and is and courageous in managing its crises. "I will say this clearly: The era of silence has passed, and our positions will remain steadfast. We will not deviate from them, not from fear, and not from courtesy. Qatar is not an aggressive country, but it is a country that will not [stand for] being harmed. It is not a country of war – but it is prepared for any possibility."[7]
