Iraq oil row: Maliki holds rare meeting with Exxon chief

Maliki appears to once again rule out production-sharing deals that Exxon has signed with Kurdistan.


BAGHDAD - Iraqi Prime Minister Nuri
al-Maliki held talks with ExxonMobil's chief on Monday, a rare meeting
with the US energy giant whose disputed deal with the autonomous Kurdish
region has drawn Baghdad's ire.
Nuri al-Maliki also
appeared to once again rule out production-sharing deals that Exxon has
signed with Kurdistan, arguing that Iraq's substantial oil reserves
"belong to all Iraqis," an oft-cited phrase in Iraq's constitution that
central government officials see as justifying per-barrel service fees.
The
meeting was the first between Maliki and Exxon chief Rex Tillerson
since the firm signed an agreement in October 2011 for oil exploration
with Kurdistan, angering the central government, which has said the US
company must choose between its deals with Baghdad and with the
autonomous region.
"Iraqis are partners in the oil that
is discovered in any part of Iraq, they cannot be partners in Basra and
not partners in other areas", Maliki said, according to his office,
referring to Iraq's southern oil-rich province.
The
statement said Tillerson voiced keenness for Exxon to "continue its work
and expand in Iraq" with the US firm's chief also apparently mentioning
"important decisions in this area" that would be taken, though no
further details were provided.
Exxon and Anglo-Dutch
giant Shell completed a deal in January 2010 to develop production at
West Qurna-1, an oil field in south Iraq, but late last year, the
American company informed Baghdad that it wanted to sell its stake in
the project, indicating it would focus on the controversial Kurdish
deal.
"I don't think Exxon Mobil will give up West
Qurna easily, and if they are forced to, they certainly don't want to
burn all bridges behind them," Ruba Husari, editor of the [You must be registered and logged in to see this link.] website, said.
"Hence their request to meet with the Iraqi PM to communicate their decision directly to him."
The
Exxon dispute is one of several between Baghdad and the Kurdish region
in Arbil -- the central government also regards other contracts signed
by Kurdistan to be illegal because they were not expressly approved by
the federal oil ministry.
A row over payments stemming from that dispute pushed Arbil to slash oil production in December.
Despite
the drop-off in December, Iraq nevertheless brought in $94.03 billion
in oil revenues over the course of 2012, a 13 percent increase compared
with the previous year, largely on the back of continually increasing
exports.
The country has sought to boost production and
exports dramatically in recent years in order to provide much-needed
income to fund the reconstruction of its conflict-battered economy and
infrastructure.
Iraq has proven reserves of 143.1
billion barrels of oil and 3.2 trillion cubic metres (111.9 trillion
cubic feet) of gas, both of which are among the largest in the world.
[You must be registered and logged in to see this link.]