The Kurdistan Regional Government (KRG) and the central government of Iraq have repeatedly discussed, over the past few months, the ways to divide oil revenues and budgets, but so far have not been able to agree on a specific mechanism.

The Middle East Monitor noted differences between Erbil and Baghdad will exacerbate over this year's budget due to deep differences.

The magazine quoted Mazen al-Faisali, a member of the Iraqi parliament, as saying that the main differences between the Kurds and the central government were the lack of transparency in the amount of oil that the Kurds were to hand over to the Iraqi central government.

The representative, however, also pointed out that the central government is not willing to pay Erbil's payments to foreign oil companies.

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