Iraqis fight over oil spoils

Through a steadily worsening security situation and deepening political divisions, a dispute is erupting between Kurdish leaders and the Baghdad regime over access to oil resources.

Kurdish authorities and the federal government in Baghdad have exchanged sharply worded statements recently in their rival claims for control over northern oilfields. The row is expected to intensify after the Kurdistan Regional Government (KRG), in

charge of the three northern provinces Arbil, Sulaimaniya and Dohuk, presents an oil bill to the regional parliament.
This would then be a basis of claims from the federal government, and an assertion of rights over oil in the north.

Iraqi Oil Minister Hussain al-Shahristani said on Tuesday that Iraq planned to increase crude-oil production to 4.5 million barrels per day (mbpd) by 2010. Its production, currently at about 2.5mbpd, could rise to 6mbpd by 2012, Shahristani said.

Iraq is believed to have 115 billion barrels of oil reserves, though the government claims reserves of 214 billion barrels. The bulk of the oil is in the south and the northern region around Kirkuk. Japan and Iraq are negotiating details of a US$3.5 billion loan, primarily to be used to rebuild Iraq’s oil sector.

Asia Times