The money helps ease tension between Erbil and Baghdad, and comes as the KRG increases its facilitation of federal oil sales.

The KRG has given up its first attempt to sell independent pipeline exports to U.S. buyers, as the United Kalavryta is redirected to a port in Israel, and the American court has suspended proceedings.

After failing to jump-start their stalled oil deal, Iraqi leaders are trading recriminations over unfulfilled export and revenue-sharing expectations.

Baghdad is set to make a partial budget transfer to Erbil within days, although the fate of a cooperative oil export and revenue deal remains uncertain.

Exports through the KRG's politically troubled pipeline have not yielded regular payments, so producers are pinning revenue hopes on the crowded local market.

Years of unrestrained spending and economic mismanagement have come to a head as oil prices drop and security costs soar, triggering risky fiscal maneuvers and IOC worries.