ERBIL, Kurdistan Region –

The Kurdistan Regional Government (KRG) has responded to Baghdad’s questions about independent oil exports, a Kurdish MP said. But what has been relayed remains unknown, and does not appear to have settled the tensions between Baghdad and Erbil.

Baghdad has remained adamant that Kurdish oil exports to Turkey must be controlled by the State Oil Marketing Organization (SOMO), and that crude must be sold at international rates.

Erbil had said it accepts SOMO as an observer. The deal with Turkey reportedly involves crude at a discount.

“It has been several days that the KRG has relayed its response through Iraq's deputy prime minister Dr. Roj Nuri Shaways to Prime Minister Nuri al-Maliki about the Iraqi suggestions to resolve the issue of oil and budget bill," said Mahmoud Osman, a Kurdish MP in the Iraqi parliament.

Fatih Daraghai, a Kurdish MP who is a member of the Kurdish committee that negotiate the budget with other Iraqi factions in parliament, told Rudaw that the Kurdish blocs had not been informed about the KRG’s latest stance on the oil issue.

"There was a decision that the KRG would inform us about its position on the oil and budget. But until now we have not received any updates," he said.

During his weekly speech, Maliki talked about increasing oil production in Iraq and mentioned the Kurdistan Region's oil resources as a potential to add to the national revenue.

"Here and in the Kurdistan Region, we are trying to increase the oil production to increase revenues for reconstruction and to better the lives of the political prisoners, the relatives of the martyrs and all layers of society in Iraq," said Maliki in his televised address.

Kurdish oil exports to Turkey were announced last month, but Ankara has said the crude is being stored – not sold – unless the dispute over sales is resolved.

Meanwhile, the Reuters news agency reported that Baghdad has hired a renowned law firm to target buyers of Kurdish oil, undermining any prospect of it selling on the international market.

While negotiations continue, federal top officials continue on their previous positions that only Baghdad has the authority to manage oil exports in the country.

KRG delegations led by Prime Minister Nechirvan Barzani have visited Baghdad twice since December 2013 for negotiations about the pending Kurdish oil export and budget issues, but they have yet to conclude any deals.

Rudaw