Iraq’s northern Kurdish area is exporting 140,000 barrels of crude a day and will raise daily shipments to 200,000 barrels next year, according to the prime minister of the self-governing region.
The rise in exports follows a deal last week with the federal government in Baghdad which also allows for the supply of 147,000 barrels a day of oil products to the semi-autonomous region, Nechirvan Idris Barzani said in remarks published today on the official website of the Kurdistan Regional Government. The federal government also agreed to make payments owed to the Kurdish region for many years, he said, without elaborating.
Crude exports from the Kurdish region were halted earlier this year in a dispute over payments relating to international oil companies operating in the area. Shipments resumed at a reduced rate in August in a move that the KRG described as a “goodwill initiative.”
An accord was reached to end the dispute on Sept. 13, Ashti Hawrami, the Kurdistan authority’s natural resources minister, said the next day. The government in Baghdad agreed to pay international oil companies working in the region 1 trillion Iraqi dinars ($858 million) this week, he said.
The federal government and the Kurdish authorities have formed a committee to discuss lingering conflicts on oil revenue sharing and payments, Barzani said. The Kurds hope that the Sept. 13 agreement would help the two sides reach a much-awaited accord on a new energy law, he said.
Iraq holds the fifth-biggest crude reserves, according to data from BP Plc that include Canadian oil sands. The government is seeking investment and expertise to boost oil output and sales after years of conflict and sanctions.