The Iraqi government announced Tuesday that it is
barring U.S. oil giant Chevron from Iraqi oil fields, in protest at the
company taking over an exploration deal with the autonomous Kurdistan
regional government.
The country's oil ministry said that Chevron signed its July 19
deal to take over Kurdish oil concessions from the Indian company
Reliance "without the approval of the Ministry of Oil or the central
government, although it was well aware of the position of the
Ministry of Oil and the central government that all contracts signed
by the regional government are illegal and illegitimate".
Oil is one of several bones of contention between Iraq's central
government and the Kurdish authorities, who are intent on resisting
any attempt by Baghdad to gain influence in their northern region.
The central government objects to Kurdish attempts to retain local
control of production, saying that oil is a national issue under the
country's 2005 constitution.
But oil companies are attracted to Kurdistan by its large
potential reserves and favourable terms offered by the Kurdish
authorities.
Chevron is the second major US oil company to fall foul of the
Iraqi authorities. Exxonmobil was barred from government-controlled
parts after signing a major exploration deal with the Kurdish
Regional Government last November.
