Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Iraq May Bar Exxon From Oil Auction If It Pursues Kurdistan Deal

Feb. 13 (Bloomberg) -- Iraq may prevent Exxon Mobil Corp. from bidding in a new energy exploration round if it refuses to rescind agreements with the country’s semi-autonomous Kurdish region, according to a spokesman for Deputy Prime Minister for Energy Affairs Hussain al-Shahristani.

“Iraq will ban Exxon Mobil from taking part in the fourth round if it persists in its position to make deals with the Kurdistan Regional Government,” Faisal Abdallah said in a telephone interview in Baghdad today. He confirmed that Iraqi authorities had not yet taken a final decision on the matter.

Iraq is waiting for Exxon to “take the right decision” and rescind the contract it signed with Kurdish authorities, Shahristani said in an interview yesterday. He called Exxon’s agreement with the Kurds illegal.

Iraq’s central government has so far refused to recognize production-sharing agreements between foreign companies and Kurdistan, home to about 40 percent of Iraq’s 115 billion barrels of reserves. The central government insists on service contracts with foreign companies and that it needs to pre-approve agreements concerning the country’s energy resources.

Exxon, which has not commented publicly on the matter, operates with Royal Dutch Shell Plc in southern Iraq at the West Qurna field, one of the nation’s biggest.

To contact the reporters on this story: Kadhim Ajrash in Baghdad, Iraq, through the Dubai newsroom at

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.