Exxon’s $53 billion Iraq deal hit on contract hiccups, Iran worries


by   |  VIEW 400
Exxon’s $53 billion Iraq deal hit on contract hiccups, Iran worries

It had just been a week the US energy giant, ExxonMobil seemed to be well-places to go ahead with a $53 billion project on rebuilding two oil fields over Iraq’s southern part, which was contemplated as a landslide triumph for the US energy company to expand its grasp into the war-struck Baghdad.

Nonetheless, on Friday, the 21st of June 2019, at least four Iraqi officials had told in terms of anonymity that the slated deal between ExxonMobil and Iraqi government had been met with a double whammy over the recent weeks, as a corrosive combination of a contract dispute and security concerns, raised by worsening tension between Tehran and Washington after Iranian Elite Revolutionary Guards had shot down a US drone later this week and United States had sent about 1000 troops to Gulf to secure oil routes through the Iran-controlled Strait of Hormuz, had been hindering the outlook of the contract.

Besides, according to one of the Iraqi government officials, the pointiest end of the talk had been ExxonMobil’s proposal of sharing the medium to heavy crude produced by the two oilfields, while another Iraqi government official had been quoted saying that Baghdad would never sign anything on current terms proposed by the US energy mogul.