Exxon may pull out of southern Iraq

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Exxon Mobil intends to pull out of southern Iraq, in favor of moving forward with its Kurdish oil contracts, an energy expert source told Al-Monitor Wednesday on condition of anonymity. The oil giant’s contracts with Iraq’s Kurdish entity have been a source of ongoing legal dispute with the Iraqi central government in Baghdad.

Exxon Mobil informed the State Department this week of its intent to pull out of southern Iraq, Reuters subsequently confirmed Thursday, citing an unnamed American official.

Exxon had sought unsuccessfully to renegotiate the terms of its contract with Baghdad central government authorities, but Iraqi leaders had not been willing to set such a precedent, the western energy expert source said.

Baghdad will be even less inclined to do so if Exxon moves forward with its Kurdish Regional Government oil exploration contracts, Iraq expert Denise Natali said.

Exxon has signed contracts to start drilling in Kurdish Iraq by the end of the year, Ben Lando, of the Iraq Oil Report, reported Thursday. “The company ‘will start moving dirt in December,'” one official told Lando.

The oil giant may be gambling, however, that it can “leverage Baghdad through the KRG,” Natali told Al-Monitor Thursday. Unlike smaller oil companies, “it has lots of time.”

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Report: Iran Qods chief Soleimani meets with Iraqi Kurdish leaders

Iran Qods Force commander Qasem Soleimani has held meetings with Iraqi Kurdish officials in Erbil this week, Rudaw reports:

The commander of Iran’s Quds Force, Qasem Soleimani, visited Erbil this week and met with top officials from the Kurdistan Regional Government (KRG), among them Prime Minister Nechirvan Barzani.

A source from the Erbil International Airport told Rudaw on condition of anonymity that Soleimani’s plane arrived from Sulaimani where the Iranian commander had met with officials from the Patriotic Union of Kurdistan (PUK).

Meanwhile, Prime Minister Barzani’s press secretary told the media that the PM has received an official invitation to visit the Islamic Republic of Iran.

“The prime minister received an invitation from the Islamic Republic to visit Tehran and meet with top Iranian officials, but he has not set a date for his visit yet,” Sami Argushi, the PM’s press secretary said.

Political analysts believe this visit by Major General Soleimani, who commands an important wing of the Iranian Revolutionary Guard Corps, alongside other visits between Iranian and Kurdish officials, is a sign of strengthening relations between Iran and the Kurdistan Democratic Party (KDP).

According to Argushi, the prime minister’s visit will be to “strengthen mutual relations between Kurdistan and the Islamic Republic.” Continue reading