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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Obama nominates Stephen Beecroft for Iraq envoy

President Obama on Monday formally nominated Robert Stephen Beecroft to be US Ambassador to Iraq.

Beecroft, the Charge d’Affaires in Iraq since 2011, has served as de facto acting ambassador since the departure of US Ambassador James Jeffrey in May.

Beecroft, a career Foreign Service officer, previously served as executive assistant to two Secretaries of State and as US Ambassador to Jordan.

Beecroft’s nomination comes as Iraq’s government spokesman Ali Aldabbagh warned in an interview with Al-Monitor Monday of growing sectarian tensions in the country. Aldabbagh, a close advisor to Iraqi Prime Minister Nouri al-Maliki, also charged that Iraqi’s fugitive Sunni Vice President Tareq Al-Hashemi has “direct” ties to groups committing terrorism in Iraq. Continue reading