would solve this issue of oil contracts, and the iraqi cabinet has endorsed those proposals by the krg , and we hope that we will be able to put that behind us. >>reporter: for some, it's a case of reconciling two completely different philosophies: >>garner: in the republic of iraq, everything is still thought of kind of like when saddam hussein ran it, everything was centralised, it was government controlled, and that's the way they're runningthe oil industry there. in the north, in kurdistan, it's entrepreneurial ... and capitalism is far more profitable for the people. >>reporter: in the meantime, oil companies have to choose between the north and south of iraq: >>said: right now and historically over the last couple of years, the federal government in baghdadhas said that they have blacklisted companies that are working in the kurdistan region. >>lee: the potential projects in southern iraq around basra were simply so huge the oil majors, the bps and exxon mobils and chinese national petroleum corporations couldn't afford to upset the baghdad government but there is significant inv