One month after Parliament passed legislation designed to help restart the pipeline to Turkey, implementation is mired in old disagreements.
Sign of cooperation bolsters KRG argument for starting federal budget transfers.
The oil-for-gas deal could sort out a number of internal Iraqi issues – both energy and political.
Political scrutiny of a contract is delaying a subsea pipeline project with the potential to lift export capacity by 500,000 bpd in a year.
Ankara sent a technical delegation to Baghdad but the two sides seem far from the top-level political agreement needed to restart oil flows.
New budget law appears to represent a rejection of the recent Baghdad-Erbil political deals that had sought to balance oil and financial authorities.
Upset about provisions in Iraq's draft budget law, refinery employees are shutting down tanker traffic and threatening a crippling fuel shortage.
Politicians are bristling at contractual terms that many investors demand to help protect them from the dysfunction of Iraq’s investment climate.
A subsea pipeline project could lift export capacity by 500,000 bpd in just over a year, but the funds can't be released until Iraq passes a new budget.
Last-minute additions to the budget bill could undermine a new framework for oil and financial cooperation needed to restart northern exports and support Kurdistan’s oil sector.
Baghdad has sent nearly $1 billion to Kurdistan since March, highlighting political cooperation that could grow into reliable financial flows with the passage of a new budget law.
