Baku, Azerbaijan, June 5
By Rufiz Hafizoglu - Trend:
The Kurdistan Regional Government (KRG) in Northern Iraq has the option of extending its agreement with Turkey on selling its oil, Turkish Haber7 TV channel quoted the Prime Minister of KRG, Nechirvan Barzani as saying on June 5.
He pointed out that the oil sale agreement was signed with Ankara for the period of 50 years, but Erbil [the capital of KRG] may extend it.
The prime minister added that Iraq's central government considers the energy agreement with Ankara an attempt to destroy the Iraq's economy and a step towards secession from Iraq.
"Our demands to the central government are quite clear: under the Iraqi constitution, the KRG must get 17 percent of revenues from the sale of Iraqi oil," Barzani stressed in contradiction to the central government's claims.
Relations between the central government in Baghdad and the KRG have been strained since the agreement with Turkey was signed in 2012. Despite the fact that 17 percent of the KRG's revenues are supposed to come from oil sales, Baghdad opposes giving local authorities the right to independently export hydrocarbons and sign contracts on their exploration and production.
Iraq's central government and the KRG have also failed to reach an agreement on accumulation of oil revenues. The Iraqi authorities claim that the revenues from selling the oil produced in the KRG's territory should be transferred to the special account in the U.S.
Yet, the KRG leadership has repeatedly stated that the oil revenues will be kept in the accounts of Turkey's Halkbank.
Turkey started exporting oil from northern Iraq to the international markets on May 23, 2014, Turkish Minister of Energy and Natural Resources Taner Yildiz said. Yildiz also said on January 3, 2014 that the KRG in northern Iraq began supplying oil to Turkey, but this oil will not be supplied to the European market without Baghdad's consent.