Washington Post: How Exxon, Under Rex Tillerson, Won Iraqi Oil Fields and Nearly Lost Iraq

By Missy Ryan and Steven Mufson:

But the deal overseen by Tillerson, whose confirmation hearings to become secretary of state begin Wednesday, defied U.S. foreign policy aims, placing the company’s financial interests above the American goal of creating a stable, cohesive Iraq. U.S. diplomats had asked Exxon and other firms to wait, fearing that such deals would undermine their credibility with Iraqi authorities and worsen ethnic tensions that had led Iraq to the brink of civil war. A law governing nationwide oil investments was tied up in parliament, and Iraqi officials were rejecting the Kurdistan regional government’s authority to export oil or cut its own deals.

When word of Exxon’s partnership with the Kurds reached Washington, the State Department chided the oil firm: “When Exxon has sought our advice about this, we asked them to wait for national legislation. We told them we thought that was the best course of action,” then-spokeswoman Victoria Nuland said.

Exxon’s 2011 exploration deal with the Kurdistan region provides a window into how Tillerson, President-elect Donald Trump’s nominee to lead the State Department, has approached doing business in one of the world’s most risky, complicated places, where giant energy deals can have far-reaching political effects.

The episode of petro-diplomacy illustrates Exxon’s willingness to blaze its own course in pursuit of corporate interests, even when it threatens to collide with U.S. foreign policy.

The Full Story (January 10, 2017)