A flurry of meetings this week between officials from the Iraqi federal government and the Kurdistan Regional Government (KRG) failed to finalize a deal to resume crude oil exports through the Iraq-Turkey Pipeline (ITP). A proposed ‘government to government’ compromise through which Erbil would put its contractual share of Kurdistan output into the pipeline gained traction, but Baghdad was ultimately reluctant to commit in writing to key conditions.
Multiple sources confirm that the plan was for the KRG to send volumes equivalent to its contractual shares in various Kurdistan fields into the pipeline to be sold by federal state marketer Somo. This would include its 50% share of Kurdish conglomerate Kar Group’s 160,000 b/d capacity Khurmala Dome in Kirkuk, as well as smaller shares in IOC-operated fields. In exchange, Baghdad would resume salary payments to Kurdistan. (CONTINUED - 1025 WORDS)
