January 23, 2020 / 6:57 PM / a month ago

Kurdistan still to iron out new oil deal with Baghdad

FILE PHOTO: President of the Kurdistan region in Iraq Nechirvan Barzani sits in a shaft of window light as he greets U.S. Vice President Mike Pence in the VIP terminal at Erbil International Airport in Erbil, Iraq November 23, 2019. REUTERS/Jonathan Ernst

DAVOS, Switzerland (Reuters) - Iraq’s autonomous region of Kurdistan has yet to begin implementing a new oil deal with the central government as final details have yet to be agreed with Baghdad, its president Nechirvan Barzani told Reuters.

“The deal was signed but a lot of details have yet to be agreed. They have a care-taker government at the moment,” Barzani said, referring to the cabinet in Baghdad.

Last year, Erbil and Baghdad agreed an early deal that most of the oil produced in Kurdistan would be transferred to national state company SOMO in exchange for budget funds.

But the exact budget allocation has yet to be agreed and the two sides also need to decide how to service Kurdistan’s debt in which oil was used as collateral. At the moment, KRG’s exports stand at around 400,000-500,000 barrels per day.

Reporting by Dmitry Zhdannikov; Editing by Alexander Smith

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