Iraq to award oil contracts

Foreign firms set to return after 36 years to develop Iraqi oil fields.

    Iraqi oil is now within the  reach of
    foreign energy giants [AFP]

    The contracts do not allow investments by the foreign companies in the oil sector but do pave the way for global energy giants to return to Iraq, 36-years after being told to leave by Saddam Hussein, Iraq's former ruler.

    Access

    The move is also seen as a first step to access the third largest proven crude oil reserves on the planet.

    Jihad said the selected companies will have the first right  to develop the fields once competitive bidding comes after the nation's long-delayed hydrocarbons law is passed by parliament.

    Iraq wants to increase oil output by 500,000 barrels per day (bpd) from the current average production of 2.5 million bpd, equal to the amount being pumped before the US-led invasion in March 2003.

    Exports of 2.11 million bpd currently form the bulk of the war-torn nation's revenues.
     
    The oil ministry is keen to raise capacity over the next five years to 4.5 million bpd.

    Iraq's crude reserves are estimated at about 115 billion barrels.

    However, Iraq's oil is lacking in infrastructure and the latest technology, because it was denied access under years of international sanctions after the 1991 Gulf War.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Why is the West praising Malala, but ignoring Ahed?

    Why is the West praising Malala, but ignoring Ahed?

    Is an empowered Palestinian girl not worthy of Western feminist admiration?

    Saudi Arabia's 'Game of Thobes'

    Saudi Arabia's 'Game of Thobes'

    Major weekend developments will have seismic implications, not just on Saudi Arabia, but the region and beyond.

    Why some African Americans are moving to Africa

    Escaping systemic racism: Why I quit New York for Accra

    African-Americans are returning to the lands of their ancestors as life becomes precarious and dangerous in the USA.