• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 4 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 1 hour Will Uncle Sam Step Up and Cut Production
  • 8 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 8 mins Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on terrorism, wars, lopping off heads * Too late now
  • 17 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 16 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 11 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 22 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 17 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 1 day Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 20 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 12 hours US Petroleum Demand Strongest Since 2007

Iraqi Kurdistan Forced To Accept Baghdad’s Oil-for-Salaries Deal?

Under domestic financial pressure, the Kurdistan Regional Government (KRG) in northern Iraq has accepted a deal from Baghdad that would have the Kurds halt unilateral oil exports and in return the Iraqi central government would pay its public employee salaries.

The deal was extended earlier this week by Iraqi Prime Minister Haider Al Abadi, and the KRG is struggling to come up with the $747 million it needs each month to pay its 400,000 public employees on its payroll. Significantly, this payroll includes the Peshmerga fighting forces that make up the key bulwark against the Islamic State (ISIS) in northern Iraq.

Related: Historic OPEC-Russia Agreement Will Have Minimal Impact

The KRG controls some 12 billion barrels of oil on its territory, with an upside potential of 60 billion barrels, and estimated reserves of some 45 billion barrels, along with 22 trillion cubic feet of natural gas. Kurdish authorities expect that they will export 1.65 million barrels of oil and 10 billion cubic feet of natural gas this year, but they’ve been bypassing Baghdad by exporting crude to global markets via Turkey—ever since a deal with Baghdad on oil and revenue-sharing collapsed last year.

The KRG made over $3.94 billion last year from direct oil export sales, compared with $1.98 billion it received from the federal government over the first half of the year. Related: Downturn Now Hitting The Refining Sector

A relative safe-haven by comparison to the rest of Iraq, the KRG territory is now facing instability and unpaid wages are adding the uncertainty. Some public employees have gone up to five months without wages. Earlier this month, KRG officials said they would cut government employee salaries by 15 to 75 percent.

Like previous agreements between Baghdad and Erbil, though, this deal may not be realized in the end. Baghdad has failed to follow through on a number of earlier budget deals that would have ended the standoff over Kurdish oil.

On Tuesday, the international community pledged more support at the Munich Security Conference for the Kurdistan Region and its Peshmerga forces.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play