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Iraq bans Exxon to explore for oil and gas in the state
EXXON MOBIL signals to Iraq's decision, approved by the Deputy Prime Minister for Energy, is not surprising. Iraq planned to increase its oil supply capacity to 12 million barrels per day by the end of 2017 current capacity of approximately 3 million barrels per day, but so far she was willing to share the profits with Western energy companies doing business in Iraq, and limited their royalties to $ 2 per barrel. According to Fadel Ghit, an oil analyst at Oppenheimer, this step is done regardless of the market price.
Ghit said that the fact that ExxonMobil made a deal with the Kurds, and really pushed herself from participating in other tenders for oil in Iraq, may appear in defiance of Exxon to the Iraqi government that it has a policy too strict now.
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