PM Barzani: Erbil wants to make new deal with Baghdad
Kurdistan Region has met all terms of previous agreement but Baghdad has not, says Barzani
The Kurdistan Regional Government (KRG) Prime Minister Nechirvan Barzani has called for a new oil export agreement with the Iraqi central government, as Baghdad is not committed to the current agreement.
In December 2014, the Iraqi central government and the KRG signed an agreement regarding oil export, in which the KRG committed to export 550,000 barrels per day, in return Baghdad was to allocate 17% of the Iraqi national budget to the KRG.
During a visit to Su- leimaniya to meet with government officials and party leaders, PM Barzani told reporters, “The Kurdistan Region has fully met the terms of the agreement but Baghdad has not.”
Kurdistan PM continued, “The agreement was signed based on the Iraqi Budget Plan for 2015, 17% of which should be sent to the KRG in return for exports of 550,000 bpd by the KRG through the Iraqi State Oil Marketing Organization (SOMO).
“If Baghdad wants to act as a buyer of KRG oil then we’re fine but a new agreement should be adopted accordingly.”
The Iraqi government deposited IQD 543 billion into KRG coffers last week on May 4th.
“The amount, however, is much less than what Baghdad had to pay KRG for April only, and this is clear evidence that Baghdad does not follow the agreement,” KRG claimed.
The original statement contained a proviso that one party has the right to repeal the agreement if the other one fails to follow it.