Baghdad brinkmanship

9 February 2012 By Una Galani Follow @ugalani

Total is expected to join Exxon Mobil in risking investments in southern Iraq by signing deals with the semi-autonomous Kurds in defiance of Baghdad. Statoil wants out of Iraq altogether. The oil giants are right to test Iraq’s resolve.

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Russian oil company LUKOIL said on Feb. 9 that Norway’s Statoil had informed it about plans to leave Iraq’s West Qurna Phase-2 oilfield, according to Russian news agencies.
France’s Total is close to securing exploration rights over several oil and gas blocks in Iraqi Kurdistan, the Sunday Times said on Jan. 29. Total already has a minority interest in a consortium led by PetroChina to develop and produce in the Halfaya field in southern Iraq.
Exxon Mobil was the first oil major with interests in the South to sign a deal with the semi-autonmous Kurdistan Regional Government. Exxon has not commented on the agreement but the deal was confirmed by Kurdistan’s Natural Resources Minister Ashti Hawrami in November.
The Exxon deal has been criticised by the Baghdad government, which challenges the authority of the semi-autonomous regional government and its right to award oil contracts.
Baghdad has threatened to take action against Exxon, which is in charge of developing the 8.7 billion barrel West Qurna Phase-1 oilfield in the South.
Statoil has an 18.75 percent stake in the 12.9 billion barrel West Qurna Phase-2 oilfield.

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