Iraq’s oil minister said on Sunday that Iraq will send ExxonMobil a further letter demanding an explanation of its contract with the Kurdistan Regional Government (KRG) after receiving no response so far from the U.S. oil group, according to a report from Reuters.
“So far we have sent Exxon three letters and tomorrow we will send them another confirmation letter seeking their response,” Oil Minister Abdul-Kareem Luaibi [Elaibi] said. “We have not decided anything yet. We are waiting for their response.”
The outcome of the Exxon move is likely to influence how other companies carry out oil investment in OPEC-member Iraq, but it could also pressure Prime Minister Nuri al-Maliki as he faces demands from other regions for more autonomy.
Iraqi officials have said the Kurdistan deal could jeopardize Exxon’s huge West Qurna One oilfield in the south. The U.S. explorer is also leading a multi-billion-dollar water injection project seen as key to southern oilfield production.