Turkey signs Exxon Mobil agreement in Iraqi Kurdish

Turkey signed an agreement with the U.S. company Exxon Mobil on oil exploration in the territory of the Kurdish autonomy of Iraq Turkish Prime Minister Recep Tayyip Erdogan as saying.

According to Erdogan, during his visit to the U.S. he will discuss details of this agreement with the country's authorities.

«Turkey's activity in the territory of the Kurdish autonomy of Iraq is quite normal, as Iraq is our neighbor, and not only us, but also Baghdad will benefit from joint projects,» Erdogan said.

Relations between the Kurdish administration in northern Iraq and Baghdad deteriorated in October 2011 after US-based Exxon Mobil received permission from the Kurdish authorities on the exploration and production of oil in this Iraqi region.

Baghdad considered the deal illegal and warned the company that if it did not abandon the agreement with the Kurds, its deals with the central Iraqi government may be revised.

Baghdad stated that it will apply sanctions against American companies and deprive it of the right to participate in energy projects in Iraq.

According to BP, the Kurdish administration in northern Iraq has oil reserves of 45 billion barrels.

Adapted from Worldbulletin