On Saturday, Iraq’s new oil minister, Abdul Kareem Luaibi, announced that Iraq will recognize an array of oil deals signed by the Kurds in northern Iraq.
Within Iraq, the tension with Kurdistan has built on the production and exploration contracts the regional government has signed with international oil conglomerates. These agreements have been rejected by the newly appointed Minister of Energy, Hussain al-Shahristani, as unconstitutional.
The dispute forestalled exportation from Kurdish oilfields, although both Shahristani and Kurdistan Regional Government Minister for Natural Resources Ashti Hawrami have both said exports could resume sometime after the first of the year.
Although Shahristani retains overall control of the energy ministry, there is optimism that his deputy Luaibi might heal Baghdad’s fractious relationship with Kurdistan.
That Baghdad will has stated that it will recognise international contracts that the Kurdish north has signed with foreign oil companies gives should make for a merry Christmas in Erbil.