Special to WorldTribune.com

BAGHDAD — A Western energy major has suspended an agreement with
Iraq’s autonomous Kurdish region.

ExxonMobil has suspended an accord with the Kurdistan Regional
Government for oil exploration in northern Iraq. The company, under threat
of a ban by Iraq, informed the Oil Ministry in Baghdad on March 5 that
ExxonMobil would not proceed with the KRG contract.

Iraq has confirmed the letter, but said it did not reverse its decision
to exclude the Western major from the next round of oil bids. The Oil
Ministry had given ExxonMobil until March to withdraw from the
Kurdistan deal.

ExxonMobil has been contracted to develop the West Qurna-1 oil field in
southern Iraq. Baghdad has insisted that it must approve all foreign
exploration contracts with KRG, which asserted that the Iraqi government has
failed to relay pledged oil revenues.

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