BAGHDAD, Nov 16 (Reuters) - Iraq will take steps to end Exxon Mobil’s contract with the country after the U.S. oil giant signed a deal with semi-autonomous Kurdistan to explore fields there, a senior Iraqi oil official said on Wednesday.
“Exxon has violated the ministry directions and instructions concerning the companies working in Kurdistan,” said Abdul-Mahdy al-Ameedi, director of the oil ministry’s contracts and licensing directorate.
“It’s a violation of the contract and the law. As a consequence the oil ministry will take steps to end the contract. But this operation will need arrangements,” he said without giving further details.
Exxon has a multi-billion dollar contract with Iraq’s oil ministry to develop its 8.7-billion-barrel West Qurna Phase One oilfield in the south.
Iraq’s central government and Kurdistan are in a long-running dispute over oil and land rights, and Baghdad has said in the past all oil deals signed with the Kurdistan region would be considered illegal. (Reporting by Suadad al-Salhy; writing by Patrick Markey)