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Irbil's hand strengthens vis a vis Baghdad over oil dispute, experts

Experts say recent developments in Iraq- naming of new oil minister and possible US-led operation against Islamic State in Kurdish region, will strenghten Irbil's hand vis a vis Baghdad over their oil sales dispute.

10.09.2014 - Update : 10.09.2014
Irbil's hand strengthens vis a vis Baghdad over oil dispute, experts

By Selen Tonkus

ANKARA 

The promise of a new and positive era in oil dealings between Irbil and Baghdad is afoot with Iraq's new oil minister, who is known to be close to the Kurds, experts say.

Possible US-led military operation against the Islamic State would also provide Iraqi Kurdistan a secure atmosphere to export its oil.

Following the April 30 general elections, Iraq finally named its new cabinet Tuesday and Adel Abdal Mahdi - a Shia from the Islamic Supreme Council of Iraq, became the new oil minister.

Ali Semin, an Iraqi expert from Istanbul-based think tank BILGESAM, told Anadolu Agency that Mahdi was a close friend of the Kurdish ex-President Jalal Talabani and both struggled long against Saddam in the pre-2003 era.

Semin maintained that both Semin and Mahdi will follow more favorable policies towards the Kurds, especially in their dispute with Baghdad over the sale of Kurdish oil without the consent of the central government in Baghdad.

Semin said there might be a deal between Baghdad and Irbil where half of the Kurdish oil will be sold via the Iraqi National Oil Company (SOMO) - as requested by the Baghdad government, and the other half by the Kurdish regional authority itself.

Political scientist David Romano of Missouri State University, said Mahdi has been a much more vocal opponent of ex-PM Nouri Maliki's anti-Kurd policies, and seems to believe in regional autonomy.

"Many feel that this is Iraq's last chance as one country, and Kurdish support for the new cabinet is conditional upon their demands regarding oil exports," added Romano.

U.S.-led coalition's military operation to protect oil infrastructure

Dr. Fahrettin Sumer from the American University of Iraq, based in the Kurdish city of Sulaymaniyah, maintains with a possible U.S.-led military operation against the Islamic State insurgency in the north of Iraq, the Kurdish Regional Government's security will strengthen the energy infrastructure and will in turn give a more secure environment for businesses, including oil companies.

"The Kurdish Regional Government would continue to export oil from the region and also seek a solution to the dispute with Baghdad in order to get its full 17 percent share from Iraq's total oil revenue," he added.

Iraq failed to approve its 2014 budget due to a political boycott by 57 Kurdish deputies after the Kurdish Regional Government’s 17 percent oil share was not included. 

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