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The United States said Monday that oil companies should not bypass Iraq's central government after authorities in the autonomous Kurdish north signed dozens of deals with foreign energy firms.
"With regard
to our own companies, we continue to tell them that signing contracts
for oil exploration or production with any region of Iraq without
approval from the federal Iraqi authorities exposes them to potential
legal risk," State Department spokeswoman Victoria Nuland told
reporters.
The United States has told companies that
"obviously they'll make their own business decisions, but unless and
until we have federal legislation in Iraq governing these things --
something that we've been urging -- that there are risks for them," she
said.
Companies including Chevron and ExxonMobil from
the United States, France's Total and Russia's Gazprom have signed deals
with Kurdistan, whose relations with Baghdad have deteriorated due to
oil contracts and other disputes.
The central government insists that all contracts are illegal if they did not go through the federal oil ministry.
Earlier
this month, Iraq gave Total an ultimatum to end dealings with the
Kurdish region or
sell its stake in a giant southern oilfield.
Source: middle east online
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