US Authorities Advised Marathon Oil Against KRG Deal

According to Iraq Oil Report, the US authorities advised Marathon Oil against entering into their recent contract with the Kurdistan Regional Government in the absence of agreement with Baghdad.

The United States’ position remains that it is in the interest of all Iraqi parties to enact a set of national laws to govern the development, management, and distribution of Iraq’s hydrocarbons resources …  We have encouraged all companies, including Marathon, to refrain from signing deals with the KRG independent of the central government’s approval … We have consistently advised companies of the significant legal and financial risks they may incur by signing contracts with any party independent of the central government’s approval.

(Source: Iraq Oil Report)

“The United States’ position remains that it is in the interest of all Iraqi parties to enact a set of national laws to govern the development, management, and distribution of Iraq’s hydrocarbons resources,” the U.S. Embassy in Baghdad said in an emailed statement.

“We have encouraged all companies, including Marathon, to refrain from signing deals with the KRG independent of the central government’s approval,” the statement continued, “we have consistently advised companies of the significant legal and financial risks they may incur by signing contracts with any party independent of the central government’s approval.

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