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Iraq gives Gazprom energy ultimatum, spokesman

Gulan Media November 10, 2012 News
Iraq gives Gazprom energy ultimatum, spokesman
Baghdad has told Russian energy giant Gazprom to either cancel its energy contracts in Iraq's autonomous Kurdish region or abandon its work with the central government, a spokesman said on Friday.

It comes just days after an Iraqi official confirmed US firm ExxonMobil, which was served a similar ultimatum, had informed the federal oil ministry that it was looking to sell its stake in a massive oilfield in south Iraq, indicating it was opting for contracts in Kurdistan instead.



"We told Gazprom to give their response to the Iraqi government -- to cancel their contract with Kurdistan or leave Badra," said Faisal Abdullah, spokesman for Hussein Shahristani, Iraq's deputy prime minister responsible for energy affairs.



He said Iraq had sent the message on November 1.



"The contract (with Kurdistan) is not legal," Abdullah said. "This situation will be the same for all companies who work in Iraq, because any energy contract should be approved by cabinet and the ministry of oil."



A Gazprom-led consortium won the contract to work on the Badra oil field, which lies southeast of Baghdad on the Iranian border, in a public auction in December 2009.



In August of this year, though, Gazprom also signed two production and exploration contracts in Kurdistan.
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