Iraq Warns Total To Freeze Kurdish Deals Or Sell Halfaya Stake

staff
August 13, 2012 03:07 AM

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View of a storage tank at a refinery of French oil giant Total in Grandpuits, southeast of Paris, in this October 13, 2010 file photo. Total has informed the Syrian authorities it will stop production in the country in accordance with European Union sanctions, a company spokesman said on December 5, 2011.

Iraqi authorities have warned France's Total that it must freeze its energy deal with Iraq's autonomous Kurdistan region or sell its stake in the country's Halfaya oilfield, a government official said on Monday.

Total is one of several major oil companies to ignore Baghdad's warnings and sign contracts with the country's Kurdish region, agreements Iraq's central government says are illegal.

"Iraq has officially asked Total to freeze or cancel its contract with the Kurdish region and respect Iraqi law or sell its stake in Halfaya oilfield," Faisal Abdullah, a spokesman for Deputy Prime Minister for Energy Hussain al-Shahristani said.

"We have made it clear to Total they have only two choices," he said. "There is no third option."

Reuters