Kurds Clash with Central Government Over Oil Contracts

Kurds will not be allowed to export oil extracted from their fields unless they meet central government conditions on signing of oil deals, Oil Minister Hussain Shahristani said

In a press conference in Baghdad, Shahristani reiterated his government's stand that the 17 contracts the Kurds have signed with foreign oil firms were illegal.

He said signing of oil contracts is a prerogative of the central government in Baghdad.

Shahristani was reported last month to have reached an agreement with Kurds to export 100,000 barrels a day of their crude.

But the deal has collapsed over differences on royalties and rights to develop oil fields.

The Kurds say development of oil fields in their areas and collection of royalties is a right they are not going to compromise.

Shahristani says the region has no right to strike oil deals on its own and he will block exporting oil produced in the Kurdish region until the Kurds relinquished their right tKurds will not be allowed to export oil extracted from their fields unless they meet central government conditions on signing of oil deals, Oil Minister Hussain Shahristani said

In a press conference in Baghdad, Shahristani reiterated his government's stand that the 17 contracts the Kurds have signed with foreign oil firms were illegal.