Local and foreign oil firms in Iraq to cut exposure as Syrian strike retaliation looms

By Rizza Sta. Ana

Sep 07, 2013 02:48 AM EDT

According to a Baghdad-based senior oil executive, local and foreign firms would be keeping a low profile in Iraq to minimize exposure to risks amid tensions after the Syrian strike. "I think all Western companies will be careful not to have too many people in Iraq as long as the American war games last," he said. Additional precaution was also recommended by Iraq's South Oil Co (SOC). Its source told Reuters, "After the fears of the Syria strike, we have notified all foreign companies: British, American and others, to reduce their movements inside the city." SOC oversees oil operations in Basra, where Exxon Mobil, Eni, Royal Dutch Shell, and BP had been reviving the oil hub to produce up to 3 million barrels per dal (BPD) from its 600,000 barrels per day (bpd) capacity without any incident.

A Wall Street Journal report said on Thursday US was able to intercept an order purportedly from an Iranian official providing instructions to Iraqi militants to attack US interests based in Baghdad should a strike happen. Should tensions escalate, operations of mega-projects BP-run Rumaila, Shell-led Majnoon, China national Petroleum Corp's Halfaya, and Russian Lukoil-run West Qurna-2 would be affected. 

Iraq's Ministry of Oil had required foreign oil companies to install a representative office in Baghdad. Chinese, Russia and British firms have a larger interests presence in the state of Iraq. US only has a few but considerably significant interest in the state. Exxon oversees its West Qurna-1 field, while Occidental Petroleum has a small stake in the oilfield of neighboring Zubair.

The major oil players in Iraq were tight-lipped about their security arrangements as a rule. 

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