What is Blackwater?

Based in Moyock, North Carolina, Blackwater is now known as Xe Services, a name change that happened after six of the security firm's guards were charged in the Nisoor Square shooting. At the time, Blackwater was the largest of the State Department's three security contractors working in Iraq.

Xe Services said the company had no employees currently in Iraq, including with its subsidiary, Presidential Airways.

"Xe does not have one, single person in Iraq," said spokeswoman Stacy DeLuke.

The US Embassy in Baghdad declined comment.

What crime did Blackwater employees commit?

The Blackwater guards involved in the incident said they were ambushed, but US prosecutors and many Iraqis said they let loose an unprovoked attack on civilians using machine guns and grenades.

One of the accused guards pleaded guilty in the case, but a federal judge in Washington threw out charges against the other five in December, ruling that the Justice Department for mishandling the evidence.

The legal ruling infuriated Iraqis and Prime Minister Nouri Al Maliki vowed to seek punishment for the guards.

Last month, US Vice President Joe Biden flew to Baghdad to assure Iraqis the Obama administration to appeal the case and bring the guards back to trial.
 

How did this affect US-Iraqi relations?

The shooting further strained relations between the United States and Iraq, leading the parliament in Baghdad to seek new laws that would clear the way for foreign contractors to be prosecuted in Iraqi courts. The US government rejected those demands in the Blackwater case.

In January 2009, the State Department informed Blackwater that it would not renew its contracts to provide security for US diplomats in Iraq because of the Iraqi government's refusal to grant it an operating license.

But last September, the State Department said it temporarily extended a contract with Blackwater subsidiary Presidential Airways to provide air support for US diplomats. It has since ended its contracts with Xe, and DynCorp International took over air services protection for US diplomats from Presidential Airways on Jan. 3.

The State Department said that was its last contract with Xe or its subsidiaries in Iraq.

Are there signs of foul-play?

The Justice Department now is investigating whether Blackwater tried to bribe Iraqi officials with $1 million to allow the company to keep working there after the Baghdad shooting, according to US officials close to the probe.

Elsewhere in Iraq, attackers bombed an oil pipeline north of Baghdad, cutting production in half at a refinery in the capital, the Oil Ministry said Wednesday.

There were no injuries in Tuesday night's bombing in Rashidiya, just north of Baghdad.

Production at the Baghdad refinery was cut from 140,000 barrels per day to 70,000, said Oil Ministry spokesman Assem Jihad.

The pipeline runs from oil fields in northern Kirkuk province to Baghdad. It has been the target of attacks for years, and has been bombed multiple times since 2004.