Baghdad and Kurds reach ‘win-win’ accord over oil revenue
In a pact that seeks to close one of Iraq’s most difficult political rifts, envoys from Baghdad and the semiautonomous Kurdish region agreed Tuesday on a plan to divide the nation’s oil wealth and possibly bolster the fight against the Islamic State.
Under the accord, Kurds will release up to 500,000 barrels of oil a day to Iraq’s central authorities — representing about a fifth of the country’s current export levels. In exchange, the Kurds will receive a 17 percent cut from the national budget, which has been strained by falling oil prices.
It also opens the way for Kurds to export oil along a pipeline to the Turkish port of Ceyhan on the Mediterranean. The exports represent another step in the Kurds expanding independence in making oil and gas deals.
On Monday, French oil giant Total and Houston-based Marathon Oil said they struck oil and gas near the Kurds main city of Irbil in the second such discovery in two years in the area. Last month, London-based Genel Energy, which already operates in the Kurdish region, said it reached an agreement with the Kurdish government to develop two natural gas fields.
- The Washington Post
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- December 2, 2014
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