Iraqi Kurdish ministers walked out of a cabinet session on Wednesday in protest at the countrys draft 2014 budget. The bill obliges Erbil to hand over its crude oil revenue to Baghdad.


The Iraqi government approved its budget for 2014 without the consent of the Kurdish ministers yesterday.


The Kurdistan Regional Government (KRG) said last week that crude had begun to flow through the pipeline, and exports were on track to start at the end of January, inviting bidders to register with the Kurdistan Oil Marketing Organisation (KOMO).


Baghdad rejected that as a violation of the constitution and on Wednesday reiterated that Iraqs State Oil Marketing Organisation (SOMO) had exclusive rights to sell crude from Kurdistan and the rest of the country.



The budget requires the Kurds to export 400,000 barrels per day (bpd) -- well above the regions current export capacity -- and says Baghdad will deduct any shortfall from the 17 percent share of state revenues to which they are entitled.