Choosing Baghdad or KRG, dilemma for Exxon continues

Iraq, April 3, 2013
Exxon Mobile, one of the US major oil production companies, has recently announced that they want to increase their part of investment in the southern Iraqi region. However, many political experts are remarking this as a boon for the central government of Iraq or Baghdad. Questions are rising US oil giant’s commitments in the autonomous Kurdistan Region.

ExxonMobil, which is operating in the Iraqi region of Basra province at West Qurna-1 oil fields as a major oil producing company, has already received warnings from the Iraqi Prime Minister Nuri al-Maliki that any contract that to be signed or has been signed with the Kurdistan region will be considered as illegal or unconstitutional.

Previously, it was reported that this US multinational company, Exxon Mobil will sell its stakes or shares of the Basra province. Though, recently the company has decided to rise its spending at the West Qurna-1 oilfields. This spurred up a lot of questions and confusions, regarding the company’s exit from the Basra region by selling its shares.

Political experts are thinking over this point carefully and many of them have been already opined that the company’s decision will be influenced by the stand of Kurdistan – whether the region wants liberation or not.
Washington-based Kurdish journalist Balen Salih stated that if the Exxon Mobil chooses Kurdistan over Basra, then definitely it will be a great setback for Baghdad. Balen Salih also believes that the decision of this company will have an impact over the relationship between Kurdistan and Baghdad. As a company, Exxon is eyeing on their profits and the only concern for the company is the oil of Iraq.
Recently, Reuters News Agency reported that a lot of retired and expertise officials have been hired by the Exxon Mobil to make a decision on the context of choosing between Baghdad and Erbil. In the advisory committee of the company, James Jeffrey, a notable diplomat who has served as an assistant to President George W. Bush, also has been included by the company.

Karwan Zebari, an official at the KRG’s representative office in the United States, remarked that ExxonMobil CEO Rex Tillerson had reiterated his company’s commitment to the Kurds in a meeting with Kurdistan Region President Massoud Barzani at Davos in late January.
Zebari said, “In that meeting Exxon reaffirmed its commitment to the contract it signed with the KRG last year to explore six fields in Kurdistan.” According to Zebari, Kurdistan is more lucrative than Baghdad for the foreign oil companies. He remarked that KRG is more secure and less bureaucratic and that is why most of the foreign oil companies are eyeing on the autonomous region of Iraq.

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http://www.iraqdailyjournal.com/story-z7329635