(MENAFN- Arab Times) US President Barack Obama has responded positively to Iraq's concerns about Exxon Mobil's oil deal with Kurdistan, and emphasised his country's respect for Iraq's constitution and laws, Prime Minister Nuri al-Maliki said.
The statement came as US oil major Chevron Corp confirmed its purchase of 80 percent of two blocks in Kurdistan in a move likely to infuriate the central Iraqi government which says all oil deals must pass through Baghdad.
Baghdad is embroiled in a dispute with the autonomous Kurdish region over oil exports and has asked Obama to stop Exxon exploring for oil there, saying it could threaten stability. On Thursday it hailed Obama's response.
"We would like to confirm that the letter was positive and convincing and stresses its respect for the constitution and Iraqi laws, in the same manner as the Iraqi government is seeking," a statement from Maliki's office said.
Contracts
"The Iraqi government will take all necessary measures in applying the law and will not allow the company to implement these contracts," it said, referring to deals signed with Kurdistan. Exxon declined to comment.
Kurdistan said last month it expected more oil majors to follow Exxon in the next few months in striking deals there.
France's Total has already said that it was interested in investments in the region.
Exxon became the first oil major to move into the northern region in mid-October when it signed a deal with the Kurdistan Regional Government (KRG). Apart from Total, Norway's Statoil is also looking closely at KRG exploration deals, industry sources have said.
Chevron, the second-largest US oil company, said it s
ees "considerable promise" in Kurdistan. It is purchasing the Sarta and Rovi blocks from India's Reliance Industries Ltd, where it will be the new partner of Austria's OMV AG - holder of the other 20 percent interest.
The dispute over oil exports is part of a broader clash between Iraqi Arab-led central government and the Kurdish government over territory and regional autonomy that many see as a potential flashpoint for conflict since the last American troops left Iraq in December.
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DUBAI, United Arab Emirates: The top energy official in the United Arab Emirates said Thursday that the OPEC producer believes the oil market is reasonably well supplied for now.
Energy Minister Mohammed bin Dhaen al-Hamli also told reporters in Dubai that the UAE is satisfied with current oil prices, which have been edging higher in recent days.
"Yes, we are happy with the price," al-Hamli said on the sidelines of an event to announce an upcoming energy conference in the Mideast commercial hub. "The market is fairly well supplied," he added.
His comments suggest the UAE does not see a need for urgent adjustments to crude output by the 12-member producer bloc. The country stands willing to supply customers with oil as they need it, al-Hamli added.
"They ask for a quote, we give them a quote," he said.
Prices for benchmark US crude oil have risen to around $90 a barrel over the past week.
The oil minister of Kuwait, another Gulf oil producer, last week described the global oil market as relatively stable.
Oil traders have been closely watching the effect on global oil supplies after a European Union ban on Iranian oil came into full effect July 1.
The UAE is currently producing about 2.6 million barrels of oil, which mostly comes from the emirate of Abu Dhabi, home to the federation's capital.
The Emirates on Sunday inaugurated a much-anticipated overland oil pipeline that bypasses the Strait of Hormuz, the route for a fifth of the world's oil supply. Iran has repeatedly threatened to block the waterway at the mouth of the Gulf if its own supplies are cut.
The new Emirati pipeline, which ends at the Indian Ocean port of Fujairah, is designed to carry at least 1.5 million barrels a day of crude. Peak capacity is expected to eventually rise to 1.8 million barrels daily.
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