Iraq Feature: How Kurdistan and Exxon Mobil Out-Manoeuvred Baghdad Over Oil (Van Heuvelen)

Several people familiar with the company's internal decision-making said there were a few simple reasons that Exxon was willing to risk its relationship with Baghdad. First, Kurdistan's geology looked very promising. Second, the Kurdish government's contract terms offered much greater profit potential. And third, Exxon could probably get away with it. A year later, Baghdad still has not backed up its threats to kick the company out of Basra.

Even so, Exxon is preparing to break ties with Baghdad altogether.

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