Iraq is in talks with the United States about a dispute over exploration deals signed by US oil company Exxon Mobil in Iraq's semi-autonomous Kurdish region without national government approval, a senior Iraqi official said.
Deputy Prime Minister for Energy Hussain al-Shahristani told Reuters on Sunday Iraq was considering several options, not sanctions, over the deal and there was no deadline to take a decision against the company.
"After this (deal) was announced, yes there have been talks with the American government. It is not a matter of mediation as much as it is a matter that concerns both governments," he said in an interview.
"Now we have several options. The Iraqi government is studying them carefully there is no deadline, these are grave decisions that need time the company is studying its options and the Iraqi party is studying its options."
He said any decision will be discussed with Exxon first before a public announcement.
Exxon became the first major to move into the northern Kurdish region in mid-October when it signed with the Kurdistan Regional Government for six exploration blocks. The KRG is locked in a feud with the Arab-dominated central government in Baghdad over territory and oil rights. The Iraqi oil ministry said the deal was illegal and could result in termination of Exxon's contract to develop the major West Qurna Phase One oilfield in the south.
The US State Department has said it told Exxon, and all major US oil companies looking to work in Iraq, there were significant risks to signing deals with the KRG before Iraq passed a national oil law aimed at resolving ongoing territorial and oil disputes.
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