In the case, Iraq accused Turkey of violating their 1973 pipeline agreement by allowing the Kurdish government to export oil without Baghdad's consent between 2014 and 2018. The halted flows of around 450,000 barrels per day (bpd) only accounted for about 0.5% of global oil supply, but the stoppage, which forced oil firms operating in the region to halt output or move production into rapidly-filling storage tanks, still helped boost oil prices last week back to near $80/bbl. An initial agreement between the two sides states that Iraq's northern oil exports will be jointly exported by Iraq's state-owned marketing company SOMO and the KRG's ministry of natural resources (MNR), according to two of the sources – a senior Iraqi oil official and a KRG official.
Revenues will be deposited in an account managed by the MNR and supervised by Baghdad, the KRG official said.
The preliminary agreement has been sent to Iraq's prime minister for final approval, according to two of the sources. The KRG source expects the deal to be confirmed by Monday. The KRG declined to comment. Iraq's oil ministry spokesman could not immediately be reached outside regular business hours. (Reporting by Rowena Edwards in London, Ahmed Rasheed in Baghdad, Orhan Coskun in Ankara and Maha el Dahan in Dubai; Additional reporting by Can Sezer in Istanbul; Editing by David Holmes)
