Oil companies urge US mediation in Erbil-Baghdad dispute

Oil production companies in the Kurdistan Region have called for US assistance in reducing tension between the Iraqi federal government and the Kurdistan Regional Government (KRG), Reuters said on Thursday, September 1.

The news agency said according to a letter and three sources, the oil companies believe the US must involve itself in the issue so that KRG oil can continue to be sent to Turkey, to avoid Ankara looking to increase shipment from Iran and Russia.
Both Iran and Russia, top oil-producing countries, are suffering from US sanctions but if KRG oil production ceases, Turkey will need to begin shipping oil from Iran and Russia to fill its shortfall, which the US would wish to avoid.
Disputes between Erbil and Baghdad began after the KRG started exporting oil through Turkey and taking the income without referring back to the federal government.
In February, the Iraqi Federal Supreme Court issued a verdict on the KRG law over the independent sale of oil and natural gas, ruling the Kurdistan Region's oil and gas law went against the Iraqi constitution.
KRG officials have rejected the federal court's ruling, describing it as political.
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