Erbil and Baghdad have agreed a resolution to their long-standing oil dispute that should pave the way for Kurdish oil exports to return for the first time in more than two years.
The deal will see Baghdad resume salary payments to Kurdish government employees in exchange for the Kurds marketing their oil exports via Iraqi state marketer Somo.
Official confirmation of the deal from the semiautonomous Kurdistan Regional Government (KRG) had yet to emerge by press time. But Kurdish press reports quoting various ministers detailed an agreement that will allow the Kurds to retain 50,000 barrels per day for local consumption but committing them to hand over some 230,000 b/d to Somo at a cost of $16 per barrel.
Drone Attack Setback
The resolution comes amid heightened tensions that saw salaries cut off to some 1.2 million public sector Kurdish employees two months ago and a wave of drone attacks against Kurdish oil fields this week.
