Office Shahristani: Erbil did not get the approval of Baghdad on Exxon deal
02/12/2011 13:50

Baghdad, January 2 (Rn) - The Office of the Deputy Prime Minister for the energy that the Kurdistan region did not receive approval from the federal government to contract with Exxon Mobil to drill for oil and gas in six areas of the region.

The head of the Kurdistan region Masoud Barzani confirmed Wednesday that the region would go ahead with its agreement with Exxon Mobil over the objections of the federal government in Baghdad.

Barzani said in an interview with "Reuters," Iraqi Prime Minister Nuri al-Maliki has been informed of the agreement before signing it and raised no objection.

Baghdad, described the opposition to the agreement as "unconstitutional."
The spokesman said Faisal Abdullah Al-Shahristani, told the Kurdish news agency (Rn) that "the President of the Kurdistan region of Baghdad, told the structure of the contract with Exxon Mobil, but the Iraqi government has not agreed to the deal."
He added that the Iraqi government to the many options on the company, including Exxon Mobil prevented from working according to Iraqi law in the Iraqi oil fields if the company insisted on working in the Kurdistan region.
He went on Abdullah says that "the Iraqi government deal on the grounds that any oil project is implemented by a foreign company must pass on its way because of oil, according to the Iraqi Constitution belongs to all Iraqis."

Exxon became the first major oil company to enter the Kurdistan region when it signed an agreement with the Kurdistan Regional Government on 18 October / October, to explore for oil and gas in six areas.

The Iraqi oil ministry said the agreement is illegal and can result in cancellation of the contract Exxon to develop the first phase of West Qurna oil field in the main south. Officials said later that they were studying sanctions.
There was no public comment on the agreement of the Exxon and Iraqi oil officials say that the company did not respond to their requests for an explanation.
The agreement highlighted tensions between Baghdad and Erbil on the management of oil wealth and the disputed areas and other issues for years with the imminent withdrawal of U.S. troops from Iraq.
In spite of the silence of Exxon commented on the State Department agreed, saying she hopes that Iraq can and Exxon to settle the dispute in a manner as not to undermine the development of Iraqi oil resources in the future.