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Baghdad set a new condition in front of "Exxon Mobil" on its work in the Kurdistan region
Posted 09/02/2012 08:03 PM
BAGHDAD (Reuters) - A senior Iraqi Oil Ministry said on Thursday that Exxon Mobil could continue to develop the first phase of the giant West Qurna field, provided that the freeze its plans to work in the semi-autonomous Kurdistan region.
Abdul-Mehdi al-Amidi, Director of Contracts and Procurement in the ministry also said that Exxon was stripped of its role as leader of the multi-billion project to pump water which is essential for the development of large fields in the south.
But he insisted that the move is not in retaliation for Exxon for its work with the government of Kurdistan.
Baghdad and threatened to cancel the contract the first phase of West Qurna field, after the Exxon-Disclosure Agreement in Kurdistan, nearly three months ago.
However, the Iraqi Oil Minister Abdul Karim and coffee set a new condition at a meeting with officials at Exxon was held in Baghdad late last month.
Amidi said that the minimum required if you want Exxon to continue the West Qurna contract will be notified and the Oil Ministry in writing that they will freeze their contracts with the Kurdistan until they reached an agreement between the province and Baghdad, or the approval of the Ministry of Oil on the contracts.
Exxon was the first major company to sign contracts for testing the atmosphere of six concessions with the government of Kurdistan, which is conflict with the central government over territory and oil.
Three of those concessions in the disputed area between Arbil and Baghdad.
Amidi said he can not for the provincial government awarded contracts to concessions outside the borders of Kurdistan.
He added that Baghdad does not want to lose their relationship with any major oil companies signed contracts with the Iraqi Oil Ministry.
Although the position of Baghdad strict Amidi said that things are going normally for Exxon in the first phase of West Qurna field, adding that the company is still spending money and working there.
And industry sources said they suspect that the U.S. company are the latest warning from Baghdad and that the company will continue to work, most likely in Arbil.
On the other hand Amidi said that the important water pumping program, led by Exxon until this week included in the lists of business two years ago, but the Southern Oil Company and the government oil company projects of the Ministry of Oil Sttulan now lead the project.
He added that the progress is unacceptable and blamed it on a project-based companies Exxon Mobil and (B. B), Eni and Lukoil.
Amidi said that Iraq has asked Exxon to stop any new activities starting on Wednesday because of delays in the project.
There had been rumors that Hussein Shahristani, the deputy prime minister for energy Sinha Exxon for leading the project to punish her.
But Amidi said that Iraq can not take any step against the company because of its agreement with the Kurdistan before the central government must prepare a formal legal response.
With regard to the limitations associated infrastructure Amidi said that Baghdad will begin on Sunday to export crude from the point of establishing a new single in the Gulf. And then will increase export capacity in the south of about 1.7 million bpd to 2.6 million.
Anida said he expected a growth of 550 thousand barrels in production this year from major fields developed by foreign companies in the south.
He said it was expected that the average production of the Rumaila field - the largest fields in Iraq, production - 1.35 million bpd this year from 14.1 million b / d in 2011.
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