"The last period witnessed extensive discussions and meetings between the Kurdistan Regional Government delegation and the federal government...especially concerning mechanisms for oil exports and the delivery of financial dues to the Kurdistan Region on the basis of a mutual understanding between the two sides," Second Deputy Speaker of Kurdistan Council of Representatives Bashir Haddad told Iraqi newspaper al-Sabah.

According to Haddad the talks ended in the creation of technical committees to continue the discussions and that the KRG said it was willing to deliver 250,000 barrels of crude oil to Baghdad, as it is required to do under the 2019 Federal Budget Law and a preliminary agreement from December, NRT said in a report.

According to Haddad, the Kurdish government has also agreed to reduce oil production in accordance with the OPEC agreement entered into by Baghdad.

Erbil is facing a severe budget shortfall because of historically low oil prices and a decision by Baghdad to freeze budget transfers because the KRG failed to abide by its obligations under the 2019 law.

Reporter’s code: 50101