Iraqi parliament okays compensation plan to resolve oil dispute

Iraq’s parliament on February 2nd gave the green light to a budget amendment to subsidise production prices for global oil companies which are working within the partly autonomous Kurdistan region, in a bid to unblock northern oil exports, according to lawmakers.

The amendment puts the rate at $16 per barrel, up from a previous proposal of $7.9 a barrel for transport and production prices, which was rejected for not being high enough by the Kurdistan Regional Government (KRG), The New Arab via Reuters reported.

The approval from parliament is a major step in sorting out an almost two-year dispute concerning Kurdish oil exports and in improving the relationship between Baghdad and Erbil.

The New Arab via Reuters