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May 12, 2006 / 4:03 PM

Iraqi Kurds battle Baghdad over oil

ARBIL, Iraq, May 12 (UPI) -- A Kurdish Democratic Party source speaking on condition of anonymity said that the KDP is at odds with authorities in Baghdad over oil.

According to the source the KDP's leadership is threatening the Iraqi Oil Ministry if it acts against foreign oil companies signing contracts with the Kurdish government.

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Foreign oil companies with interests in Kurdish northern Iraq include Det Norske Oljeselskap, Turkey's Petoil and General Energy, Canada's Western Oilsands and Heritage Oil and Australia's Woodside.

KurdishMedia.com reported on May 12 that the companies have bypassed Baghdad and signed contracts with the Kurdish government in Arbil to explore for oil.

In May Det Norske Oljeselskap announced that its first test Tawke-1 well in Zakho could begin production in the first quarter of 2007, after which the Kurdish government created an Oil Ministry headed by Seperyas Hurani.

Patriotic Union of Kurdistan leader Jalal Talbani, currently President of Iraq, is reportedly negotiating a deal on Kurdish oil with Shiite leaders and is proposing to appoint a Shiite as Vice-Minister in Kurdistan's Oil Ministry.

Austin visits Ukraine, voices U.S. support against Russian aggression

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Army tests MK-22 Precision Sniper Rifle at Fort Bragg ahead of fielding

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