Kadhimi, Barzani meet in Baghdad to address oil, budget issues

Masrour Barzani, prime minister of the Kurdistan Regional Government of Iraq, met July 24 with Iraqi officials in Baghdad, including Iraqi Prime Minister Mustafa al-Kadhimi, reportedly discussing the establishment of a new energy government for the Kurdistan Region.

The prime minister of the Kurdistan Regional Government (KRG), Masrour Barzani, visited Baghdad July 23 to discuss longstanding disputed issues between Baghdad and Erbil.

“I’m glad to be back in Baghdad,” Barzani tweeted as he landed in Baghdad. “We have lots to discuss — the things that bring us together and push us apart.”

The ownership and management of Kurdistan oil and gas, the budget share and the fate of disputed areas are the main issues between the two sides that have remained unsolved since 2003.

“We have constitutional blueprints to settle our 17-year-old disputes, and win-win solutions in the interest of the entire country, including the Kurdistan Region,” Barzani noted.

Barzani had separate meetings with Prime Minister Mustafa al-Kadhimi, parliament Speaker Mohammed al-Halbusi and President of the Supreme Judicial Council Faiq Zaidan.

The disputed issues are multi-aspect issues, requiring actions and cooperation from all three powers.

The most urgent matter between the Kurdistan Region and Iraq’s federal government is the Oil and Gas Law.

In February, the Iraqi Federal Court ruled the 2007 Oil and Gas Law governing Iraqi Kurdistan’s oil resources unconstitutional.

Iraq’s Ministry of Oil immediately took legal action against the oil companies working in the Kurdistan Region. Some of these companies have already withdrawn from the region in order to avoid possible legal action against them.

In a symbolic move, Barzani was officially received and welcomed by Minister of Oil Ihsan Abdul-Jabbar at Baghdad Airport. He then met with Kadhimi and Abdul-Jabbar at the government palace to discuss the issue.

The three-hour meeting resulted in issuing a long joint statement emphasizing the necessity of cooperation between Baghdad and Erbil to solve all disputed issues in the economy, security and legal sectors.

“During the meeting, they [Kadhimi and Barzani] discussed all national affairs and issues that concern the lives of Iraqi citizens and the provision of services and ways to continue joint work between Baghdad and Erbil in a way that achieves food security for all Iraqis and ensures a decent life for them,” the statement read.

In regard to the oil and gas dispute, the statement asserted that negotiation should be continued between the relevant institutions of both sides in order to reach a win-win solution within the framework of the Iraqi Constitution and law.

“In this context, it was agreed to increase dialogue between the federal Ministry of Oil and the Ministry of Natural Resources in the Kurdistan Region of Iraq to address the outstanding issues and continue working to reach common solutions, and to achieve a state of integration in the management of the oil resources, in a manner that serves the interest of the Iraqi people,” the statement continued.

An informed source in the KRG told Al-Monitor on condition of anonymity that Baghdad proposed to establish a new national oil and gas company for the Kurdistan Region under joint management in order to regulate the entire industry.

In principle, Erbil has agreed on this idea; however, there is now disagreement over the ownership of this company. Baghdad insists that it should be owned by the federal government, according to the constitution and the recent ruling of the Federal Court.

The source said that Erbil sees the oil and gas issue as a fateful matter that it cannot give up on.

Hence, despite the amicable meeting between the two leaders, the oil and gas issue will remain a main dispute between Baghdad and Erbil.