The Iraqi government has signed an agreement which will bring to a new start of oil export in the Kurdistan Region.

Government spokesman Ali Dabbag expressed the approval of Baghdad government for the oil agreement with the Kurdistan Region. It is predicted that the operation expenses of foreign companies will be met by the Finance Ministry. Dabbag stated that acting upon a request by the Ministry for Oil, the Finance Ministry has assured this payment with a written statement to the Kurdish Government.

At a press conference on oil, the Iraqi Oil Minister Hüseyin el Þehristani mentioned the agreement between Baghdad and the Kurdistan Regional Government; the oil income will be transferred to Iraq Government Oil Company Somo and the government will meet all expenses of the oil drilled from Kurdistan.

Þehristani has recorded that the generated oil from Kurdistan region has to pass through Iraq petroleum pipelines and all oil incomes will be transferred to centralized management.

Oil extraction in the Kurdistan Region was halted in October 2009. The oil fields in the region were operated by Danish DNO Company and Turkish Genel Enerji Company. The daily production in the region was of approximately 60 thousand barrels. Kurdistan government started to export oil by 1 June but Baghdad government refused to recognize the agreements of Kurds with foreign companies.

According to the Iraqi government, the oil incomes must be transferred to the centralized management. Erbil (Hewler) government, on the other hand, states that each of DNO and Genel Enerji companies invested nearly 500 million dollars.

Translator: Berna Ozgencil