The sorry state of its facilities, a decade of international embargo, successive wars, and the alarming state of its finances today forced Iraq to reopen its oil deposits to foreign capital and expertise.
The decision of the government of Nouri al-Maliki to auction ‘service contracts’ for the operation of Iraq’s six largest oil fields and two undeveloped gas fields in Baghdad drew global oil companies, as well as heavy criticism from the parliamentary coalition.
The six fields contain 43 billion barrels of crude out of a total of 115 billion barrels of proven reserves at the national level. Currently, Iraq ranks third in oil reserves, next to Saudi Arabia and Iran. Many areas in Iraq remain unexplored, however. Beginning in 2010, licenses will be given to 16 other fields of undeveloped deposits. 31 international companies have been prequalified, so far.
Iraqi oil is one of the cheapest in the world to extract (1.5 to 2 dollars per barrel). “Even adding 10% to 15% additional cost for the safety of employees in a country where political stability is far from assured and where the attacks take place every day, the case remains good,” says an expert.
To give employment to all those who took up arms against the American occupation, as well as those who fought against the government, more than two million new public employees have been recruited.
