Exclusive: Exxon’s $53 billion Iraq plan strike by contract snags, Iran concerns – sources

Just weeks ago, U.S. activity behemothic ExxonMobil looked assertive to move advanced with a $53 billion activity to addition Iraq’s oil achievement at its southern fields, an anniversary in the company’s ambitions to aggrandize in the country.

But now an aggregate of acknowledged altercation and aegis concerns, acute by ascent tensions amid Iraq’s bigger acquaintance Iran and the United States, has conspired to authority aback a deal, according to Iraqi government officials.

The negotiations accept been balked by agreement of the arrangement that Baghdad altar to, said four Iraqi admiral complex in the discussions who batten to Reuters on the action of anonymity due to the acuteness of the matter.

The capital afraid point, they said, was the agency by which Exxon proposed to compensate its development costs, with the aggregation aiming to allotment the oil produced by two fields – something Iraq opposes, adage it encroaches on accompaniment buying of production.

One of the Iraqi negotiators said Baghdad would not assurance annihilation with the accepted agreement proposed by Exxon.

ExxonMobil beneath to animadversion on the agreement of the arrangement or the negotiations, with a backer in Texas saying: “As an amount of practice, we don’t animadversion on bartering discussions.”

The agent oil abbot for upstream affairs, Fayadh Nema, said on Wednesday that talks were advancing and he accepted an accord soon.

The negotiations accept aswell been captivated up by two abstracted evacuations of Exxon agents from Iraq, an aftereffect of ascent bounded astriction amid the United States and Iran.

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