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4 August 2012

Kurdistan, Total Oil Deal Angers Baghdad

The Iraqi government has said French oil major, Total will face 'severe' consequences for buying the stakes in the Harir and Safen blocks in the Kurdistan Region from US-based Marathon Oil without the government's consent, Reuters has reported. "We will punish companies who sign deals without the approval of the central government and the oil ministry," said Faisal Abdullah, a spokesman for Iraq's deputy prime minister for energy Hussain al-Shahristani. The first exploration well on the Harir field was drilled on Monday and the first exploration well on the Safen field will be drilled next year, Marathon Oil said. "They have a permit in the south of Iraq and at the worst the government could renegotiate concessions or withdraw the license. But these wells are not very profitable," the firm said.