04/05/2012 10:51

BAGHDAD, May 4 (AKnews)- Kurdistan Blocs Coalition (KBC) renewed its calls on the Iraqi government for paying the dues of the investing companies in the oil sector of the Kurdistan Region.

The Federal government and Ministry of Oil should comply with the brokered agreement with the Kurdistan Regional Government (KRG) with regards to expending the dues of the oil companies in turn for KRG's commitment to exporting 175,000 barrels of oil per day, said Muayyad Tayyeb, KBC spokesperson.

Erbil suspended all its oil exports, 175 barrels per day, early April, in protest to the failure of Baghdad government in reimbursing the $1.5b due of the foreign investors in the past 10 months.

Baghdad had agreed to pay only $560m.

( Let's make a deal here, we will pay you 1/3 of what we owe you )

The gradual reduction in oil exports and its eventual suspension strained Baghdad-Erbil relations further.

Deputy Prime Minister for Energy Affairs Hussein al-Shahrestani accused Kurdistan of withholding large sums of income from illegal oil sale. Similar accusations were made against Iraqi Ministry of Oil for selling oil to Israel.

The tensions temporary calmed down when a call by KBC resumed Kurdistan oil exports.