Posted by
Jason C. Lawrence on Wednesday, December 10, 2008 8:53:50 PM
Iraq's Oil Ministry has agreed to resume oil sales to the
South Korean company SK Energy after the company withdraws from a
contract with the Kurds, an official said
Saturday.
The Oil Ministry suspended oil exports to
South Korea's SK Energy and several other international firms to
protest deals they had signed with the semiautonomous Kurdish
government in northern Iraq.
But the decision will be
reversed since South Korea's leading oil refiner has informed the Iraqi
government that it plans to withdraw from the contract with the Kurds,
Falah al-Amiri, the head of the state oil marketing arm SOMO, told The
Associated Press. He gave no timeframe.
"The company
officials have said that they will not be involved in any commitments
apart from the federal government," al-Amiri said in an interview at a
three-day energy conference that began Friday in Baghdad. "Oil
shipments will be allocated for this company in the near
future."
SK Energy could not immediately be reached
for comment.
The Iraqi federal government suspended
crude exports to South Korea's leading oil refiner in January on
grounds that South Korean companies had not abandoned a deal signed in
November with the Kurdish administration to develop a disputed oil
field.
The Kurdish regional government in northern
Iraq has signed more than 20 oil deals with foreign firms to work in
Kurdish-controlled fields since it drafted its own oil and gas law in
August 2007.
The Shiite-led Iraqi central government
says the deals are invalid with no national oil law in
place.
SK Energy is part of a consortium led by the
state-run Korea National Oil Corp. that signed a package of oil deals
with Kurdish authorities last year.
Kurdish
authorities played down concern about the
decision.
"The deal between this consortium with the
Kurdish regional government is still valid and the withdrawal of one
company is not a matter of concern to us," spokesman Falah Mustafa
said.
The Kurds, whose territory sits on top of vast
reserves, argue the Iraqi constitution gives them the right to
unilaterally negotiate and sign oil deals, without consulting with the
central government in Baghdad.
The Oil Ministry,
however, considers those agreements illegal and has warned it will
exclude and blacklist companies that sign deals with the
Kurds.