After more than 15 months, ExxonMobil has finally taken its first tentative steps towards upstream development in the semi-autonomous Kurdistan region of Iraq.

In late 2011, the company signed exploration and production sharing contracts for six blocks in the region. Since then, it has been attempting to balance its interests with the Oil Ministry, which includes the development of one of Iraq’s largest oil fields, and with the Kurdistan Regional Government (KRG). Baghdad has made it clear that it will not tolerate the firm working for both sides.


But the US firm is now signing further agreements for land to build a base camp for operations and applying for work permits in Kurdistan. Upstream drilling work could begin soon, which would make the firm’s choice of preferred partner clear.