Despite the latest deal for the export of gas from Kurdistan being rejected by the Iraqi oil ministry, the need for oil and gas revenues could lead to some form of agreement between the semi-autonomous region and the Iraqi state, it has been claimed.

The recent Kurdish plan to fill the Nabucco pipeline with gas for Europe has been rejected by the Iraqi oil ministry, amid concerns that this and other deals signed by the Kurdish government are not legal.

But the demand for funds from the export of oil and gas could lead to the formation of a deal between the two regions, Reuters reports.

Samuel Ciszuk, an analyst at IHS Global Insight in London, told the news provider: "Iraq is desperate for oil export money and hard currency, a potential driver for a deal with the Kurdish region that is much stronger than anything we've seen previously."

The latest Kurdish gas deal - between Dana Gas and Crescent Petroleum, and OMV AG and Hungary's MOL - may have led to a dedicated supply source for the Nabucco pipeline.

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