Exxon Mobil pulls out foreign staff from Iraqi oil field
May 18, 2019
Exxon Mobil's decision to evacuate its foreign staff from a major Iraqi oil field comes amid rising tensions between the US and Iran. The US company's employees are reportedly being flown from Iraq to Dubai.
Image: picture-alliance/AP Photo/N. al-Jurani
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Sources in the Iraqi oil industry and a senior Iraqi official said Saturday that Exxon Mobil, an American oil and gas corporation, had begun evacuating its entire foreign staff — around 60 people — from the West Qurna 1 oil field in the southern Iraqi province of Basra.
Ihsan Abdul Jabbar, the chief of Iraq's state-owned South Oil company, which owns the Basra field, said that the Exxon evacuation would not affect oil production, as local engineers would continue their work normally.
"Exxon Mobil's evacuation is a precautionary and temporary measure," Jabbar said. "We have no indication over any dangers. The situation is secure and very stable at the oil field, which is running at full capacity and producing 440,000 barrels per day.
"The foreign engineers will provide advice and perform their duties from the company's Dubai offices, and we have no concerns at all," he added.
Exxon Mobil has a long-term deal with Iraq's Southern Oil Company to develop and rehabilitate the oilfield to increase its production. The US firm declined to confirm the evacuation reports.
The Exxon evacuation came amid a growing spat between Washington and Tehran. The US has substantially increased its military presence in the Persian Gulf, however, it has played down the risk of war.
On Saturday, Saudi Arabia and other Gulf countries accepted a US request to redeploy American troops on their territory and in Gulf waters in order to deter potential Iranian attacks.
In an advisory to its citizen on Saturday, Bahrain warned its citizens against traveling to Iraq and Iran. The Gulf monarchy's Foreign Ministry said in a statement that the advice was due to the "unstable situation in the region and the recent escalations and threats against security and stability."
The latest tensions all take root in US President Donald Trump's decision last year to withdraw from the 2015 nuclear accord between Iran and world powers and impose wide-reaching sanctions.
A year after Donald Trump pulled the US from the international nuclear accord with Iran, the Middle East nation announced it would no longer adhere to some "voluntary commitments" in the accord.
Image: picture-alliance/epa/D. Calma
The deal breaker
President Donald Trump announced on May 8, 2018 that he was pulling the United States out of the 2015 Iran nuclear deal, arguing that the international accord was not in America's "national interest." The decision threw a cloud of uncertainty over the future of the nuclear accord and raised tensions with US allies in Europe.
Image: Reuters/J. Ernst
Slap in the face
Britain, France and Germany lobbied the Trump administration and Congress to remain in the nuclear accord, arguing that the deal was working and a US violation without a follow up plan would be destabilizing. In European capitals, the Trump administration's withdrawal was viewed as a slap in the face of allies.
Image: Reuters/K. Lamarque
Iran scrap 'voluntary commitments'
A year to the day after Trump's announcement, Iran informed the other signatories of the accord that they would no longer adhere to certain "voluntary commitments." Iranian President Hassan Rouhani said the signatory nations had 60 days to implement promises to protect Iran's oil and banking sectors or Iran would resume the enrichment of uranium.
The decision came after the United States deployed an aircraft, the USS Lincoln, along with a bomber task force to the Middle East. Washington said the deployment was intended as a "clear unmistakable message." Iran said it took action because the European Union and others "did not have the power to resist US pressure."
Image: AP
A triumph of diplomacy
The Joint Comprehensive Plan of Action (JCPOA), better known as the Iran nuclear deal, was signed in 2015 by United States, China, Russia, France, Germany and Britain (P5+1) and Iran following years of negotiations. Under the international agreement, Iran agreed to dismantle its nuclear program and be subject to monitoring in exchange for the lifting of international nuclear related sanctions.
Image: picture alliance / landov
Compliance and verification
The JCPOA includes a robust monitoring, verification and inspection regime carried out by International Atomic Energy Agency (IAEA). The UN watch dog has verified Iran's compliance with the deal in 12 quarterly reports. The JCPOA allows Iran to pursue a peaceful nuclear program for commercial, medical and industrial purposes in line with international non-proliferation standards.
Image: picture-alliance/dpa/R. Schlager
Obama's achievement
The Iran nuclear deal was President Barack Obama's signature foreign policy achievement. Seeking to undo nearly every Obama administration legacy, Trump came into office calling it the "worst deal ever." The Trump administration argues the nuclear deal doesn't address other unrelated issues such as Iran's ballistic missiles, regional influence, support for "terrorist" groups and human rights.
Image: Reuters/Y. Gripas
Iranians approved
The nuclear deal and lifting of punishing nuclear related international sanctions created optimism in Iran after years of economic isolation. However, even before Trump pulled the US out of the deal, Tehran blamed the US for holding back international investment and not fulfilling its end of the bargain due to the uncertainty created by Trump's threats.
Image: picture alliance/AA/F. Bahrami
The opponents
After eight years with Barack Obama, Israeli Prime Minister Benjamin Netanyahu found the US president he wanted in Donald Trump. The Israeli leader repeatedly slammed the deal despite his own military and intelligence chiefs' assessment the that JCPOA, while not perfect, was working and should be maintained. Saudi Arabia and the UAE are the other main opponents of the nuclear deal.
Image: Reuters/R. Zvulun
Who's left?
The EU-3 (Britain, France, Germany) have scrambled to ensure that Iran receives the economic benefits it was promised in order to avoid Tehran pulling out of the deal. As EU businesses face retaliation from the US for doing business with Iran, many are opting to avoid Iran. This would likely be a present to Chinese and Russian businesses.
