Oil
Iraq in Serious Talks Over Kurd Oil Sales
BAGHDAD – Baghdad is in “very serious” discussions with the Kurdistan Regional Government to break a political deadlock on the controversial subject of oil sales from the semiautonomous Kurdish region, Deputy Prime Minister Hussein al-Shahristani said Tuesday.
Plans by the KRG to begin oil exports through a pipeline to Turkey have infuriated Baghdad, which claims sole authority over the country’s oil sales.
Additional exports from Iraq’s semiautonomous Kurdish region are important to reduce Iraq’s very large budget deficit this year.
The 2014 draft budget assumes exports of 400,000 barrels a day from the semiautonomous region. Without these exports, Dr. Shahristani said Baghdad would be unable to make payments to the KRG.
However, Baghdad and the KRG remain at odds over oil exports. Baghdad has threatened to take legal action against any company involved in oil exports from Iraq without its approval.
The deputy prime minister added the country is targeting oil production capacity of 4.7 million barrels a day in 2015, rising to 9 million barrels a day by 2020.
– WALLSTREET JOURNAL

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