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Iraqi Kurdistan reiterates objection to BP's Kirkuk oil deal

Thu, 07th Nov 2013 21:33

ARBIL, Iraq, Nov 7 (Reuters) - Iraq's Kurdistan regionreiterated its objection to a deal between BP and thecentral government to develop the northern Kirkuk oilfield, aday after the local governor, a Kurd, voiced full support forthe British company's plans.

Kirkuk lies on the disputed boundary between the autonomousKurdish region and the rest of Iraq, and is at the heart of adispute between Baghdad and the region over territory andresources.

The Kurdistan Regional Government's (KRG) difference withthe Kirkuk governor's stance on the BP deal also points totensions within the autonomous region over how to manageresources.

Baghdad signed a contract in early September for BP torevive the giant oilfield, allowing the company to negotiateaccess to significant reserves in the north in return forhelping to arrest a huge decline in output.

At that time, the Kurdistan Regional Government (KRG)rejected the deal.

On Wednesday, BP chief executive Bob Dudley and Iraqi OilMinister Abdul Kareem Luaibi travelled to Kirkuk and met thecity's governor, who voiced his "complete support".

But a spokesman for Kurdistan's Ministry of NaturalResources (MNR) said on Thursday it continued to oppose the dealand would neither facilitate nor assist any work or security forBP until the KRG was engaged as an equal partner.

"The KRG has to date not been consulted on this matter andwe regard the agreement that BP has allegedly signed with thefederal government as unconstitutional, and therefore notlegally defensible," the spokesman said.

The governor of Kirkuk, Najimeldin Kareem, is a seniormember of the Patriotic Union of Kurdistan (PUK), which rules inpartnership with the Kurdistan Democratic Party (KDP) -- seen asthe main driver behind the region's oil policy.

"The fact that Najimeldin has seen BP and welcomed them toKirkuk, and MNR has issued a statement saying they were notinformed is a clear indication of a rift opening between theKurdish political parties," said Shwan Zulal, head of theLondon-based Carduchi Consulting.

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