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Baghdad to transfer oil payments to Kurdistan: Hawrami

01 Oct 2012

(MENAFN) The central government in Baghdad is set to transfer oil payments to Iraq’s semi-autonomous Kurdish region, Reuters reported, citing Kurdish Energy Minister Ashti Hawrami.

Baghdad and Kurdistan have reached an accord earlier this month to address a dispute over oil payments after the latter vowed to continue exports and Baghdad said it would pay foreign companies working in the north.

Kurdistan has angered Baghdad by signing deals with foreign oil majors, such as Exxon and Chevron, with the central government’s approval.

The oil contracts row, however, is part of a broader battle between the Baghdad government and Kurdistan over oil rights, territory and regional autonomy that is straining Iraq’s fragile federal union.

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