“BAGHDAD (Reuters) – Exxon Mobil has officially informed Iraq’s government it wants to pull out of a $50 billion oil project, tellingBaghdad in a letter it has started talks with other oil companies to sell its stake, senior Iraqi officials said.
Exxon’s decision to quit the West Qurna-1 oilfield will exacerbate tensions between Baghdad and the autonomous Iraqi Kurdistan region, where Exxon has signed oil deals seen as more lucrative but dismissed by the central government as illegal.
Kurdistan has upset Baghdad by signing deals with foreign companies including Exxon, Chevron and Total . Kurdish officials say that right is enshrined in the constitution.
But Baghdad says only the central government can control oil policy.
Iraq’s cabinet also said on Wednesday it was expelling Turkey’s state-owned TPAO from its exploration block 9 oilfield but denied that the measure was prompted by any proposed move by the Turkish company into Kurdistan.”
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