Bloomberg News

Iraq Lawmaker Janabi Says No Rules Prevent Exxon-Kurdistan Deal

January 31, 2012

Jan. 31 (Bloomberg) -- Iraq’s legislation doesn’t prevent oil companies from signing deals with the central government and with semi-autonomous authorities in the North, as in the case of Exxon Mobil Corp., said Adnan al-Janabi, chairman of the nation’s Oil and Energy Committee.

The country’s new energy law has been under study for about five years amid divisions among the country’s major political factions. Al-Janabi said yesterday he expected a first reading of the law in Iraq’s parliament next month.

“With or without the law, I don’t think there is anything to constrain any company from operating anywhere in Iraq,” Janabi told reporters in London today. “I don’t see any legality in announcing anyone as being blacklisted.”

The Baghdad government has refused to recognize production- sharing agreements signed by Kurdish regional authorities with foreign companies without its approval. Hussain al-Shahristani, deputy prime minister for energy affairs, said last month the Iraqi government was “weighing measures” that may be taken against Exxon after it signed contracts the government considers illegal with authorities in the Kurdish region.

--With assistance from Kadhim Ajrash in Baghdad and Nayla Razzouk in Dubai. Editors: John Buckley, Rachel Graham

To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net -0- Jan/31/2012 16:51 GMT


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