The Kurdistan Blocs Coalition in the Iraqi parliament criticized Deputy Prime Minister for Energy Affairs Mr Hussein al Shahristani's position on oil giant Exxon Mobil's oil contract with Kurdistan Region to explore six fields in the region for oil exploration.

Mr Al Shahristani gave Exxon Mobil the choice either to work in the West Qurna field or the fields of Kurdistan confirming his rejection of the company's contract signed with the region.

Mr Muayyid Tayyeb coalition spokesman said that threatening a US oil company with stopping its work in Iraq if it entered a contract with the region is semi personal position that is not compatible with the position of Prime Minister Mr Nuri al Maliki.
He said that Mr Shahristani's position towards the right of Kurdistan Region to conclude oil contracts is unconstitutional and political agreements between us and the federal government. It will lead to a new crisis and disputes between the region and the federal government.

The tension increased recently between the governments of Baghdad and Erbil after the Kurdistan Regional Government rejected a draft Oil and Gas Law approved by the Iraqi government in August. The region believes the draft law gives too much power to the Federal Government to manage the oil wealth and would be at the expense of the region.

In the past Baghdad has prevented companies operating in the Kurdistan Region from participating in licensing rounds to develop Iraqi oil fields. Other super giant 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.

Mr Ashti Hawrami minister of Natural Resources in the Kurdistan Region said that the region signed an agreement with Exxon Mobil Corporation on October 18th 2011. Hawrami's statements that came during the Kurdistan and Iraq Oil & Gas Conference in Erbil were the first official confirmation of signing up with the US Company from the KRG.

(Sourced from AK News)