Iraqi central government: Oil from Kurdish administration in Northern Iraq illegally exported to Iran
Azerbaijan, Baku, April 3 / Trend, A.Taghiyeva /
Oil which the Kurdish administration in Northern Iraq refused to supply to the central government is illegally being exported to Iran, the Al-Quds Al-Arabi agency on Tuesday quotes Iraqi Deputy Prime Minister for Energy Hussain al-Shahristani as saying.
He said stopping oil supplies from the Kurdish administration will be a strong blow to the Iraqi state budget. He also said the central government will take the necessary steps to resolve this crisis situation.
Last week, the Kurdish administration cut oil supplies to Baghdad down to 50,000 barrels per day, and stopped supplies completely on Sunday.
Relations between the Kurdish administration in Northern Iraq and Baghdad worsened in October 2011, after U.S. firm Exxon Mobil received permission from the Kurdish authorities for exploration and production of oil in the Iraqi region. Baghdad considered the deal illegal and warned the company that if it does not abandon the agreement with the Kurds, its deals with the central Iraqi government may be revised.