BAGHDAD - Iraq's oil minister flew to the largely autonomous Kurdistan region on Monday for talks over disputed contracts the Kurds signed with oil companies but which the central government says are illegal, the government said.
Deals the Kurdistan Regional Government (KRG) signed with foreign energy firms on its own initiative are a sore point between the Shi'ite Arab-led government and Kurdish leaders. Baghdad will not recognize them.
"Oil Minister Hussain al-Shahristani arrived in Arbil airport ... to discuss the oil contracts in the Kurdistan region," Iraq's cabinet said in a statement.
It said he was due to meet KRG Natural Resources Minister Ashti Hawrami and other members of the regional government.
Officials fear a future armed conflict between Iraqi Arabs and Kurds over oil and disputed territories bordering Kurdistan if they cannot reach a political settlement.
Iraq's cabinet agreed a draft oil law in February last year, but it has failed to get it through parliament partly because of rows between the KRG and Baghdad over control of oil contracts.
Iraq has the world's third largest proven reserves at around 115 billion barrels. In the absence of an oil law, Baghdad has been negotiating contracts with oil majors under old laws.
The KRG says the constitution gives it the right to also do deals in its territory, but the dispute has kept the majors away.
Deals the Kurdistan Regional Government (KRG) signed with foreign energy firms on its own initiative are a sore point between the Shi'ite Arab-led government and Kurdish leaders. Baghdad will not recognize them.
"Oil Minister Hussain al-Shahristani arrived in Arbil airport ... to discuss the oil contracts in the Kurdistan region," Iraq's cabinet said in a statement.
It said he was due to meet KRG Natural Resources Minister Ashti Hawrami and other members of the regional government.
Officials fear a future armed conflict between Iraqi Arabs and Kurds over oil and disputed territories bordering Kurdistan if they cannot reach a political settlement.
Iraq's cabinet agreed a draft oil law in February last year, but it has failed to get it through parliament partly because of rows between the KRG and Baghdad over control of oil contracts.
Iraq has the world's third largest proven reserves at around 115 billion barrels. In the absence of an oil law, Baghdad has been negotiating contracts with oil majors under old laws.
The KRG says the constitution gives it the right to also do deals in its territory, but the dispute has kept the majors away.
