Iraq's Kurdish regional government will make fresh proposals to Baghdad in two weeks to iron out differences over the federal oil law, the region's prime minister said on Tuesday, Reuters reported.
Disputes between the largely autonomous northern region and Baghdad have delayed the law for over a year. Iraq needs billions to modernise the oil industry and raise output after decades of sanctions and war, but uncertainty over the law has stalled international investment.
"Very soon, about two weeks from now, we will start negotiations to fin-alise the agreement," Bar-zani told reporters at a news conference in Dubai.
The two sides will discuss a package of proposals covering the oil law, revenue sharing, the functions of the oil ministry and the national oil company, Barzani added. "It is important for all of Iraq," he said. "Without that law oil companies cannot come into Iraq."
Barzani said he would also hold talks with the federal government over Baghdad's decision to halt oil exports to Austria's OMV and South Korea's SK Energy after the companies signed oil deals with the Kurdish region. Baghdad claims the deals were illegal. "We don't think they can stop these deals," Barzani said.
Baghdad controls Iraq's export pipelines, and until the Kurdish region reaches an agreement with the federal government it is unable to produce more oil.
The Kurdish region was ready to pump 150,000 barrels per day (bpd) of oil, Barzani said. Norwegian producer DNO is producing from wells in the Kurdish region and has built a pipeline to hook up to Iraq's main northern export route to Turkey, but has yet to receive an export licence from Baghdad.