Heralding a breakthrough in a bitter feud over control of Iraq’s oil wealth, the Iraqi oil ministry said last week it would commence supplying crude oil from the Kurdish region as soon as the area was connected to the national export pipelines. The exact timeline was not disclosed.
However, on May 11, 2009 Iraq’s Oil Minister, Hussain Shahristani repeated that oil deals signed between players and the Kurdistan regional government are illegal.
With the announcement (to begin exports), KNOC’s crude oil development projects in the Kurdish region will move at a faster pace, KNOC said in a statement, adding that it anticipated crude supplies to commence in the near future.
The oil feud is part of a larger dispute between minority Kurds and majority Arabs over resources, land and power that has stalled national energy legislation and cast a shadow over a country struggling to emerge from six years of bloodshed.
In April 2009, KNOC and SK Energy failed the pre-qualification process for oil exploration rights in Iraq. Although the two companies were not formally given reasons, industry sources said it was due to their involvement in the Kurdish region.
