Kurdistan: We are negotiating with Baghdad to modify the oil agreement

Shafaq News / The Minister of Planning in Kurdistan region , Ali al- Sindi said that the federal government in Baghdad has made the prospects of the oil agreement between the two parties
blocked, and that Kurdistan Region's economy was effected a lot due to non-payment of the Government of Iraq to the region's share of oil revenues.


He said in a statement to "Sky News Arabic" station that "we are negotiating with the Government of Iraq to modify the oil agreement, especially that Iraq had not paid the agreed amount to Kurdistan.


Sindi said "we are negotiating with Baghdad to modify the oil agreement; because the falling prices reduced Kurdistan’s oil revenues, saying that" Baghdad has no intention to solve the oil problem with Kurdistan. "


The minister pointed out that "not implementing the current oil agreement as the agreed has impacted the economic situation in Kurdistan and we are committed to the Convention until this moment, despite the fact that we have obligations to the people of Kurdistan."


The Regional government is facing a severe financial crisis as a result of Baghdad's
non-commitment to send its share of the Iraqi general budget despite the oil agreement signed by the two parties during the formation of the current Iraqi government, headed by Haidar al-Abadi and by which it agreed with Erbil to export 550 000 barrels of crude oil per day by 250 000 barrels from Kurdistan fields and 300 000 barrels from Kirkuk fields for the benefit of the Iraqi Oil Ministry through SOMO, compared to Baghdad's commitment to send 17% of the general Iraqi budget to the region, but both parties allege non commitment of the other to the agreement