With hundred of thousands of barrels of its oil stuck in the Turkish Mediterranean port of Ceyhan, unable to be sold on the world market because of its continuing row with Baghdad, the Kurdistan Regional Government (KRG) is discovering just how landlocked and boxed in it is in terms of utilizing the vast oil reserves under its control.

KRG Prime Minister Nechirvan Barzani shuttled between Istanbul and Baghdad again in the last few days in a fresh attempt at overcoming the problem, but with little apparent success. Baghdad appears determined to stick to its guns and prevent the KRG from selling oil from northern Iraq unilaterally, saying this violates Iraq’s constitution.

Baghdad also has support from Washington, where administration officials fear the energy cooperation between Turkey and the KRG will increase the risk of splitting up Iraq — already in the throes of sectarian strife — and are consequently putting pressure on Ankara over its energy dealings with the Iraqi Kurds.

Iraq's constitution says oil revenues, regardless of where the reserves are located in the country, have to go through Baghdad and allocates the autonomous Kurdish region 17% of total revenues.