Baghdad warns the Kurdistan Regional Government (KRG) that it risks losing its official 17% share of federal revenues should it defy Baghdad and proceed with independent oil sales. The three sides – Baghdad, Erbil and Ankara – remain deadlocked with the US urging continued dialogue, which has so far led to naught.

Still, the stalemate, which seems to have resulted from a hardening of Baghdad’s position after what appeared to have been a thaw just before the end of last year, has failed to deter further investment in the Kurdish region’s energy sector. (CONTINUED - 1951 WORDS)