Kurdistan Regional Government (KRG) is ready to sign a new agreement with the Iraqi central government and increase its oil exports if Baghdad guarantees KRG a monthly revenue of $1b from the federal budgets, said KRG Spokesperson, Safeen Dizayee, according to Reuters.
Dizayee clarified in an interview that the regional government would be willing to sell its oil through Baghdad regardless of whether this oil would go directly to the international market or to Baghdad first, Daily Star wrote.
Iraq’s central government in March stopped oil exports through a Kurdish pipeline to pressure the local authorities to resume talks about an oil revenue sharing agreement. The KRG had stopped delivering crude oil to the central government a year ago, a decision was taken when Baghdad’s payment fell under $400m a month, according to Dizayee.
The Kurdish region exported an average of 513,041 barrels through the pipeline to Turkey in May, generating about $391m, of which about $75m was paid to oil companies that produced the crude, according to KRG official estimates.