The two parties have signed an initial agreement under which Erbil will hand over 250,000 b/d of oil production to federal Iraq’s state marketer Somo in return for its allotted share of the federal budget – effective 1 January.

Talks to resolve the perennial oil sharing dispute between the Iraqi government and Kurdistan Regional Government (KRG) may have finally reached a breakthrough this week. Both sides agreed in principle to abide by the constitutional arrangement whereupon...