Washington “Behind Baghdad on Oil Issue”

Washington supports Baghdad’s position regarding ExxonMobil‘s oil contracts with the Kurdistan Regional Government, according to reports from AKnews.

Mahmoud Othman, a Representative from the Kurdish Blocs Coalition in the Iraqi Council of Representatives, told AKnews the measures the Iraqi government has taken towards Exxon are political and not economic. He said Baghdad believes this company is important, and must choose whether to work with Kurdistan region or Baghdad.

The U.S. position is bad towards Kurdistan…Preventing Exxon Mobil Corp. from operating in the region will make losses for Iraqis in general, including the people of Kurdistan, because the revenues of the extracted oil from Kurdistan goes to the treasury of the federal government.

Javier Blas, commodities correspondent for the Financial Times, said Exxon’s move north into Kurdistan flew in the face of conventional wisdom that “the U.S. interests of ‘Big Oil’ and Washington go hand-in-hand”. The U.S. state department were caught unawares by the corporation’s northern adventure that was taken it would seem contrary to strong advise from the U.S. government.

The Iraqi Oil Ministry said last week that it will prevent Exxon from participating in the fourth licensing round if it decided to implement the six contracts concluded with the KRG.

(Source: AKnews)

One Response to Washington “Behind Baghdad on Oil Issue”

  1. Re da Caste December 5, 2011 at 11:35 am #

    Is this a fairy tale? This paper is getting worse…