Iraqi authorities, Exxon Mobil suspend talks over multi-billion-dollar infrastructure contract

ERBIL (Kurdistan 24) – Talks between US oil giant Exxon Mobil and the Iraqi government for a multi-billion-dollar project have reached a deadlock.

Negotiations on a multi-billion-dollar infrastructure contract have reached an impasse between Exxon Mobil and the Iraqi government following disagreements over terms and costs, Reuters reported on Sunday, citing industry sources.

More than two years of negotiations on awarding the US firm a project to build a water treatment facility and related pipelines needed to boost Iraq’s oil production capacity have experienced difficulties because of conflicting views on contract terms and costs, Iraqi officials and industry sources said.

One Iraqi official revealed that “unless the differences [are] resolved, the project could be awarded to another company in a tender.”

Losing the contract could deal a blow to Exxon’s broader Iraqi plans, as it would be handed rights to develop at least two southern oilfields as part of the deal, Reuters reported.

However, sources stated that talks between Exxon and the Iraqi government are ongoing.

According to the report, further delays to the project could also hold back the oil industry in Iraq.

“Iraq needs to inject water into its wells or risk losing pressure and face severe decline rates, especially at its mature oilfields,” the report warned.

“As freshwater is a scarce resource in the country, using treated seawater is one of the best alternatives.”

Editing by Karzan Sulaivany