Deal Possible Between Iraq, Kurdistand and ExxonMobil on Oil Exploration Contract

By Pierre Bertrand,

Shutterstock photo

After several days of loaded proclamations, a deal may be in the offering between ExxonMobil, the Kurdish regional government, and Iraq's central government, in relation to an oil exploration contract the company signed with Kurdistan that the central government calls illegal .

Officials from Kurdistan and the central government met in Istanbul Turkey to try to work out an agreement. It's not yet known if one has been struck.

Speaking to Reut ers on Thursday, Deputy Prime Minister Ross Nouri Shawis said he doesn't believe the central government will likely cancel existing contracts including ExxonMobil's, which grants the company access to the 8.7-billion-barrel West Qurna field in that country.

Because of an on-going dispute between Baghdad and Kurdistan's relationship with foreign oil companies, Iraq's central government hinted Wednesday that it will follow through with threats to cancel ExxonMobil's contract, after it was made known that the U.S. oil company signed an exploration deal with the regional government.

"Generally, there is a majority who wants to resolve this problem, but of course there are other anti views, and this is normal with any topic," Shawis told Reuters.

ExxonMobil officials continue their silence, and have no comment on the matter.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Commodities
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