Baghdad to establish a new state-owned company in Kurdistan

Shafaq News/ Iraq's federal government will establish a new state-owned company to run the oil Federal governmentsectorin the Kurdistan region, the oil ministry said in a statement on Saturday.

The aim of the new company will be to enter into new technical service contracts with oil firms currently operating there under the Kurdistan Regional Government (KRG), according to the statement.

The oil ministry will pursue legal action against companies that continue to operate under "unlawful production sharing contract schemes" and that "do not engage in good faith negotiations to restructure their contracts," according to the statement.