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 Deal made on Kurd oil, Kirkuk

 Source : UPI | VOI | Agencies
  Kurd Net does not take credit for and is not responsible for the content of news information on this page

 


Deal made on Kurd oil, Kirkuk  16.4.2008





April 16, 2008

BAGHDAD, -- Iraqi media reports say Baghdad has agreed to Kurdistan region's oil deals and stance on a draft oil law in exchange for a delayed vote on oil-rich Kirkuk.

Meetings in Baghdad between a delegation from the Kurdistan Regional Government KRG and the central government have been taking place, and although there is no official confirmation, Azzaman, Sotal Iraq and the Voices of Iraq news agency have reported the agreement.

An agreement on funding for the Peshmerga, the Kurdish security forces, has reportedly also been reached.

The KRG and central government have squared off over the oil law for more than a year. The Kurds favor a decentralized oil sector, allowing producing provinces and regions some autonomy in signing deals with foreign companies.

The central government, however, claims the sole right to negotiate and sign deals in the oil and gas sectors. This issue, and the extent foreign firms should be allowed into Iraq's nationalized oil sector, are both blocking the oil law.

The KRG has passed its own regional oil law and signed more than 20 deals. Oil Minister Hussain al-Shahristani and other members of the government have called the deals illegal and have thus far blocked any companies that signed with the Kurds from entering the oil sector in the rest of Iraq.

A dispute over the oil-rich city of Kirkuk, as well as other territories outside the KRG area, plays into the talks as the Kurds push for a vote to allow residents to decide whether to join the KRG. A referendum was called for in the constitution,
www.ekurd.net to take place by the end of 2007. It's a controversial item, however, since the area's Arabs and Turkomen populations, among others, disagree on whether Kirkuk should join.

The United Nations negotiated in December a six-month moratorium in order to resolve the issue.

This week's talks in Baghdad, however, may see another six-month extension in exchange for Baghdad recognizing the KRG oil deals, according to media reports.

This would be a major coup for the Kurds and a strong hit on Shahristani, who has been championing the pushback against the KRG deals while both negotiating oil deals with major oil firms and readying for Iraq's first round of oil and gas field tenders.

Rochdi Younsi, Middle East analyst for the business risk firm Eurasia Group, said if such a deal is realized it will harm the credibility of Shahristani and only delay a row over Kirkuk. And it could be a move by Prime Minister Nouri al-Maliki to shore up needed political support.

"If a deal with Kurdish leaders is indeed in the making,
www.ekurd.net Prime Minister al-Maliki cannot secure the support of all Iraqi factions for it," Younsi said. "But in the context of Iraqi politics, competing political leaders will continue their efforts to avoid the worst by seeking short-term solutions to a multitude of complex sectarian, political and economic disputes."

Kirkuk city is historically a Kurdish city and it lies just south border of the Kurdistan autonomous region, the population is a mix of majority Kurds and minority of Arabs,
Christians and Turkmen. lies 250 km northeast of Baghdad. Kurds have a strong cultural and emotional attachment to Kirkuk, which they call "the Kurdish Jerusalem.".

The article 140 in Iraqi constitution calls for conducting a census to be followed by a referendum to let the inhabitants decide whether they would like Kirkuk to be annexed to the autonomous Iraqi Kurdistan region or having it as an independent province.

These stages were supposed to end on December 31, 2007, a deadline that was later extended to six months.

The former regime of Iraqi President Saddam Hussein had forced over 250,000 Kurdish residents to give up their homes to Arabs in the 1970s, to "Arabize" the city and the region's oil industry.

Kurds seek to include the city in the autonomous Iraq's Kurdistan region, while Sunni Muslims, Turkmen and Shiites oppose the incorporation. The article currently stipulates that all Arabs in Kirkuk be returned to their original locations in southern and central Iraqi areas, and formerly displaced residents returned to Kirkuk.

Copyright, respective author or news agency, UPI, VOI, Agencies    

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