What is the fate of Baghdad-Erbil’s oil-for-budget agreement amid ongoing protests?
Iraqi political sides vow to block a recent oil-for-budget agreement by Iraq’s caretaker government with the Kurdistan region.
The Kurdistan Region of Iraq has vast proven oil and gas resources; however, mismanagement, corruption and ruling parties’ monopoly on power have brought the region to the brink of financial collapse amid longstanding controversies with the Iraqi government over the region's share of federal budget.
Following extensive negotiations, the Kurdistan Regional Government (KRG) announced Nov. 27 that a final oil-for-budget deal with the Iraqi federal government had been reached in which the KRG agreed to submit 250,000 barrels per day of crude oil to Iraqi State Oil Marketing Company in return for receiving a fair share of the country’s budget for 2020. The KRG currently produces 500,000 barrels per day, and has been exporting most of its oil independently through Turkey since 2013.
