Submit your comments on this article | ||
Iraq | ||
Kurds reduce oil supplies for non-payment of Baghdad's debts | ||
2012-12-09 | ||
According to Balou, the Kurdish autonomy reduced supplies from 250,000 barrels per day to 100,000 barrels per day. "The central government of Iraq following an agreement on the payment of debts to foreign companies made the payment to the sum of $650 million in October 2012. However, in November Baghdad suspended payment of its debts. According to the agreement, in November the central government had to pay $350 million," Balou said.
Relations between the Kurdish administration in northern Iraq and Baghdad deteriorated in October 2011 after US-based Exxon Mobil received permission from the Kurdish authorities on the exploration and production of oil in this Iraqi region. Baghdad considered the deal illegal and warned the company that if it did not abandon the agreement with the Kurds, its deals with the central Iraqi government may be revised. The Kurdish administration in northern Iraq has oil reserves of 45 billion barrels. | ||
Posted by:Steve White |