Major French oil
company Total’s recent move to buy a 35 percent stake in two exploration blocks
in Iraq’s north has drawn an angry response from the central Iraqi government,
which has been unsuccessfully been trying to bar companies from dealing
directly with the Kurdistan Region Government (KRG) there.
Total, which followings its
U.S. rivals into the area, was warned by Baghdad on July 31 that it faced
“severe” consequences for buying stakes in the Harir and Safen blocks from its
U.S. peer Marathon Oil without the central government’s consent.
‘Total will be blacklisted’
“We will punish companies who sign deals without the approval of the central government and the oil ministry,” said Faisal Abdullah, a spokesman for Iraq’s Deputy Prime Minister for Energy Hussain al-Shahristani.
“Unless Total reviews the deals, it will face severe
consequences.
Total will be blacklisted for violating Iraqi law,” he said
without giving further details.
Both fields in the Marathon Oil deal are located south of Iraq’s
border with Turkey. Seismic exploration of both fields is expected to be
completed by September.
The first exploration well on Harir was drilled on July 31 and
the first exploration well on Safen field will be drilled next year, Marathon
Oil said.
Chevron, the second largest U.S. energy company, will be barred
from contracts in central and southern Iraq as a result of its decision to
purchase stakes in two oil-exploration blocks in northern Iraq, Baghdad
announced earlier last week.
Furthermore, Iraq last month asked U.S. President Barack Obama
to stop Exxon Mobil from exploring for oil in northern Iraq, saying the U.S.
company’s actions could have dire consequences for the country’s stability.
The central government Iraqi is also opposing Turkey’s fresh
initiative to buy oil directly from the KRG to compensate a fall in supply due
to the embargo on Iran
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