according to a statement from the Iraqi prime minister's office on Monday, U.S backs central government in ongoing tension between Erbil and Baghdad over Kurdish oil deals with international companies.

The statement contained details of a meeting between the prime minister and Elizabeth Jones, U.S Assistant Secretary of State for Near Eastern Affairs.

“The United States has called on all the companies to (remember) the necessity to co-ordinate with the central government before concluding any deal or contract, especially in the fields of oil and gas”, a statement from Prime Minister Nuri al-Maliki’s office said.

Washington recognized that U.S firms working in other countries made their own business decisions but that it had given advice on Iraq, a U.S state Department spokesperson told Reuters.

“The USG (U.S government) has informed and will continue to inform U.S companies that signing contracts for oil exploration or production with any region of Iraq, without approval from federal Iraqi authorities, exposes these companies to potential legal risks”, the spokesperson said.

Baghdad maintains it alone has the right to export Iraqi crude. But Kurdistan has moved ahead with singing exploration contracts with oil majors such as Exxon, Chevron, Total and a unit of Russia’ s Gazporm.

In April Kurdistan halted its share of national exports as Baghdad had not made payments to companies working there, but it restarted shipments on Aug.7 with a warning they could be halted again in a month if there were no payments.

Central government’s payment to the companies working in Kurdish region is still absence.
France’s Total and a unit of Russia’s Gazporm followed U.S majors Exxon and Chevron into signing deals with Kurdistan, ignoring all Baghdad’s warning and threats.