Oil deal and payment promises in Iraq’s IMF pledge
A "letter of intent" from Iraq outlines a new oil for revenue deal with the KRG and commits to paying oil companies and spending on the Basra Gas Company.
A worker for Iraq's South Oil Company calls in an oil tanker to fill up at the al-Basra Oil Terminal in February 2010. (BEN LANDO/Iraq Oil Report)
In its formal request for $5.3 billion in new loans from the International Monetary Fund (IMF), Iraq’s finance ministry has suggested a new version of an oil and revenue deal between the federal government and the Kurdistan region.
If implemented, the oil for revenue proposal could effectively provide federal endorsement of the Kurdistan Regional Government's (KRG) separatist oil policy – previously the subject of bitter dispute with the federal government – and deliver more cash to the beleaguered regional government in Erbil, in addition to its independent oil exports that Baghdad has previously referred to as smuggling.
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