Iraq: Baghdad and KRG finally agree on oil revenues

The Iraqi federal government and the Kurdistan Regional Government (KRG) announced a draft agreement on sharing oil revenues on 2 December, following two days of negotiations between federal Prime Minister Haider Al-Abadi and KRG Prime Minister Nechirvan Barzani. The deal, which builds on a temporary agreement signed in November, still needs to be approved by parliament and written into the 2015 budget. Presuming it is, the KRG will supply 250,000 b/d for export through the federal State Oil Marketing Organisation (SOMO) in return for a resumption of monthly payments of the KRG’s 17% slice of the budget.