Iraqi Kurdistan oil a slippery issue
Ownership of Iraqi Kurdistan oil is a major source of friction between Baghdad and Erbil, while Turkey and Iran compete for lucrative oil transport contracts.
NAJAF, Iraq — Iran and Turkey are trying to extend their economic influence over Iraqi Kurdistan oil, even as controversy flares over surreptitious deals between Kurdistan and Turkey.
Iraqi Kurdistan has been shipping oil to Turkey without Baghdad's knowledge, resulting in Iraq violating an OPEC agreement, according to accusations leveled Jan. 3 by Iraq's prime minister. Also, Iraq recently confirmed that a Kurdistan Regional Government (KRG) minister had offered to sell oil fields to Turkey for $5 billion, again without consulting Baghdad.
Meanwhile, Iranian Oil Minister Bijan Namdar Zanganeh plans to visit Iraqi Oil Minister Jabbar al-Luaibi next week to discuss cooperative projects related to oil and gas. Chief among these is the establishment of an oil pipeline from the province of Sulaimaniyah in Iraqi Kurdistan to Iranian territory.
Such a project would almost completely end the oil export monopoly of the Kurdistan Democratic Party (KDP), which is led by KRG President Massoud Barzani. The oil is now carried through Turkey, which has close strategic relations with Barzani's party.
