AFP reported that Iraq has paid oil contractors in its autonomous Kurdistan region for the first time.

Mr Barham Saleh the region's prime minister said that the region's premier said that the central government in Baghdad transferred a total of USD 243 million to contractors working in the Kurdish region made up of three provinces in Iraq's north.

He said that this confirmation of payment to the KRG for the regions contractors’ amounts to around 50% of net revenues derived from the export of over 5 million barrels of oil from the Kurdistan region between the start of February 2011 and March 27.

The statement said that the payment was made as part of an interim agreement on revenue allocation agreed between Mr Saleh, Mr Nuri al Maliki PM of Iraq and the national ministers of oil and finance.

The payment is the first made by Baghdad to oil companies working in Kurdistan. It had previously refused to pay amid a row with regional authorities in Arbil.

Kurdish leaders and the central government have squabbled over payments, revenue sharing and Baghdad's refusal to recognize the dozens of oil contracts Arbil has signed with international energy firms.

Iraq currently produces around 2.6 million barrels of oil per day exporting about 2.1 million bpd, with revenues from crude sales accounting for 90 percent of government income.

Mr Ashti Hawrami regional natural resources minister of Kurdistan said in the statement that the region is currently exporting around 135,000 barrels per day and is projected to increase that to 200,000 barrels per day by year end.

(Sourced from AFP)