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FINANCIAL NEWS
Iraq starts transferring initial oil payment to Kurdistan
03 Oct 2012
(MENAFN) Iraq’s Finance Ministry is transferring an initial USD650 million to semi-autonomous Kurdistan region for oil companies working there, Reuters reported, citing the Deputy Prime Minister Rosh Nuri al-Shawish.
Last month, Baghdad’s central government has agreed with Kurdistan’s local government to draw a line under a dispute over oil payments, after the Kurds vowed to resume exports and Baghdad said it would pay foreign companies working there.
Recently, Kurdish Energy Minister Ashti Hawrami said on Sunday payments would be transferred to the autonomous region that same day, offering hope the long-running conflict is easing.
Kurdistan has angered Baghdad by signing deals with foreign oil majors such as Exxon and Chevron, without the central government approval.
Kurdistan stopped oil exports in April, in protest over what it said were overdue payments from the central government to companies in the Kurdish region.
It later resumed shipments, but threatened to cut them off again if there was no agreement on payment.
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