Iraq Awaits Kurdistan Response to Crude Oil Export Proposal

Iraq is awaiting a response from the semi-autonomous Kurdish region on a proposal to export the area’s crude and will impose penalties if the oil is sold without Baghdad’s approval, Iraq’s Deputy Prime Minister for Energy Affairs said.

Kurdish crude should be exported by Iraq’s State Oil Marketing Organization, known as SOMO, while international oil companies operating in the enclave should be paid from the Kurdistan Regional Government’s share of the national budget, Hussain al Shahristani said. OPEC’s second-largest producer is awaiting a final proposal from BP Plc on developing its Kirkuk field and is close to signing deals with other companies on revised output targets at major fields.