The Kurdistan Region and Iraq are in the final stages of an oil agreement for Kirkuk. It allows Baghdad to receive the revenue with Erbil receiving a share, as well as securing payments for Russia’s Rosneft and Turkey’s BOTAS in order to transport the oil to global markets, according to the KRG.
Iraqi Prime Minister Haider al-Abadi revealed on Tuesday that the two sides have already agreed to resume oil exports through the KRG's controlled pipeline, but that his government was waiting for Turkey’s view within 10 days.
Safeen Dizayee, the KRG spokesperson, told Rudaw that no "concrete agreement" is in place as of yet, but was hopeful that Baghdad will agree to the KRG-proposed plan.
"In short, the agreement would be on the basis that both sides, the [Kurdistan] Region, and Baghdad, and the companies who are related to that amount of oil will receive the benefits," Dizayee said.
He explained that the KRG can receive a share of the crude derivatives like fuel from the refineries, plus a revenue share of the oil exports.
"With regard to the excess in revenues originating from the sale of this amount of oil [to the international market] — that ends up in the Iraqi treasury — the KRG would be able to receive a share of the excess revenues on the basis of the budget, and the agreement that will be made,” said Dizayee.
"[Per the agreement] the two companies of BOTAS and Rosneft would also be able receive their tariffs for exporting oil, both from within the Kurdistan Region, and inside Turkey,” he added.
The KRG has an agreement with the two companies to transport oil through its Kurdistan-Ceyhan pipeline.
"It appears that Baghdad will welcome the agreement, as has been mentioned by Mr. Abadi himself. It is a suggestion that was proposed by the Kurdistan Region," Dizayee said, revealing the details of the deal discussed when the Kurdish delegation met with Abadi last month in Baghdad.
The KRG is hopeful.
"No concrete agreement has been made over this suggestion. It remains a suggestion to this date. But it seems that Baghdad will take it into serious consideration. We hope that it results into a good agreement."
KRG Deputy PM Qubad Talabani touched on oil while attending a KRG Ministry of Higher Education and Scientific Research event on Wednesday.
"We as Kurdistan Regional Government, have informed them [the Iraqi government] that Kirkuk oil can be exported through Kurdistan's oil pipes and be sold, and the income to be returned to Iraqi government's treasury [so that] everyone can benefit it, but they have not done so as of now," Talabani said.