AK News quoted Iraqi Oil Ministry as saying that it will prevent Exxon Mobil from participating in the fourth oil licensing round if Exxon does not cancel its contracts with the Kurdistan Regional Government.

Mr Abdul Mahdi al Amidi DG of the Contracts and Licenses Department said that Exxon Mobil violated the working laws of the Oil Ministry when it contracted with KRG. The Ministry is waiting for an the official response from the company before it will be completely prevented from working in Iraqi oil fields."

Exxon Mobil, the Texas based hydrocarbon corporation signed an exploration agreement with the KRG to start drilling in 6 fields. This has dropped the supermajor right in the middle of a battle between the KRG and the federal government in Baghdad.

Mr Hussein al Shahristani deputy PM for Energy gave Exxon Mobil the choice either to work in the West Qurna field or the fields of Kurdistan, thus threatening to cancel existing contracts with the US supermajor.

In the past Baghdad has prevented companies operating in the Kurdistan Region from participating in licensing rounds to develop Iraqi oil fields. Other supergiant oil companies working in southern Iraq, like BP and Royal Dutch Shell, have held off from moving into Kurdistan Region for fear of antagonizing the Iraqi government.

(Sourced from AK News)