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FINANCIAL NEWS
Iraq likely to impose sanctions on Exxon Mobil
24 Nov 2011
(MENAFN) Iraq’s Deputy Prime Minister for Energy, Hussain Al-Shahristani, said that since Exxon Mobil, the US oil firm, inked a deal with the semi-autonomous Kurdish region without the consent of Baghdad or Washington, before the end of 2011, the government of Iraq might punish Exxon through imposed sanctions, reported Arab News.
Al-Shahristani added that Baghdad was in dispute with northern Iraqi Kurds over land and oil rights, adding that Exxon signed three exploration deals with the Kurds.
He also said that the move by the Iraqi government would put Exxon’s contract to develop a huge oilfield in southern Iraq at risk, since Iraq announced previously that any oil agreements inked with the Kurdish Regional Government (KRG) were illegal.
It is worth noting that the US State Department said that it had warned Exxon and other companies of the risks of signing deals in Iraq without nationwide approval.
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